INDIAN STEEL INDUSTRY
The Indian steel industry has witnessed steady growth, on the back of various initiatives taken by the Government of India. The soaring demand from different sectors, such as, infrastructure, real estate and automobile has put the steel industry in India on the world map.
Economic reforms initiated by the government in 1991 have assisted in the growth of steel industry. Prior to the reforms, the steel industry was dominated by the public sector. However, after the reforms this sector became open to private investments and foreign investments. The 1991 reforms allowed for no licenses to be required for capacity creation, except for some locations. A lot of new steel plants have been set up in the country due to huge foreign investments and state-of-the-art technology. Tata Steel was the first steel plant established in 1907 in India. Some of the other steel plants in the country include Bhilai Steel Plant at Chattisgarh, Rourkela Steel Plant at Orissa, Durgapur Steel Plant at West Bengal to name a few. In 2010, India was ranked as the fourth largest producer of steel by the World Steel Association.
The Indian steel industry began expanding into Europe during the 21st century. In January 2007, Tata Steel made a successful US$ 11.3 billion offer to acquire European steel maker Corus Group PLC. In 2006, Mittal Steel acquired Arcelor for US$ 38.3 billion to become the world's biggest steel giant.
Some of the growth drivers helping the sector to grow are:
* Abundant availability of iron ore in the country with states such as Orissa, Jharkhand and Chhattisgarh are rich in iron ore reserves. The National Minerals Development Corporation (NMDC) plans to expand its iron ore production capacity from its existing capacity of 30 million tonnes per annum (MTPA) to 50 MTPA by 2014–15 through the capacity expansion of current mines as well as by setting up new mines.
* The country has well established... [continues]
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