Government Should Sort Out Internal Challenges: Tata Steel

Published: 15th August 2015 05:15 PM  |   Last Updated: 15th August 2015 05:15 PM   |  A+A-

By PTI

JAMSHEDPUR: The government should sort out internal challenges at a time when the domestic steel industry is facing challenges from China, Tata Steel Managing Director India and South East Asia T V Narendran said today.

"We can do much better had the government addressed internal challenges such as availability of raw material and import duty as demand of steel would continue to grow", he told reporters here.

Narendran said it was not that Indian producers are not competitive with world players as "our five/six steel producers feature in the top steel producers of the world even now".

Elaborating on the challenges faced from China, Narendran said China was producing 825 million tonnes of steel against their demand of 725 million tonnes.

They are producing 100 million tonnes more than the demand, which was more than the current total capacity of our country, which was between 80 to 85 million tonnes, Narendran said.

China was exporting two to three million tonnes, which was spoiling our market, he said, adding that the total export of steel to India was 10 million tonnes, which was equivalent to the capacity of Tata Steel's Jamshedpur plant.

"We could set up a steel plant if (we) could have such a volume of export of steel", he said.

Not necessarily Tata Steel alone, this would help steel producers such as Jindals, Bhushans, Sail, among others, to set up steel plant and increase the capacity of the country, which was targeting to enhance it to 300 million tonnes, he added.

To achieve the target, he said, "We will have to invest more than USD 200 billion to produce additional 200 million tonnes of steel."

The central government has taken various initiatives in this regard and more steps are needed to be taken to attract investment, he suggested, while focusing on the need to implement projects in sectors such as infrastructure and automobile to increase steel consumption and create job opportunities.

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