Investment in steel sector touches Rs 2.75 lakh crore

New Delhi, Oct 30 | Updated: Oct 31 2005, 07:25am hrs
Not to be left behind in the race to cash in on the unprecedented infrastructure boom in the country, domestic steel producers have committed an investment of nearly Rs 2.75 lakh crore compared with Rs 95,000 crore by foreign giants.

Altogether, the proposed investment of a whopping Rs 3.75 lakh crore is billed to take the countrys annual steel production capacity beyond 100 million tonne mark by 2012.

Three of the major players, who have taken the plunge in the Indian steel sector, include the worlds largest steel company Mittal Steel Company, South Korean giant Posco and domestic major Tata Steel.

While Mittals and Posco have signed memorandums of understanding to pump in Rs 95,000 crore in Jharkhand and Orissa, Tatas and state-owned Steel Authority of India Limited (SAIL) have decided to unfurl major capacity expansion plans by announcing to invest around Rs 1.3 lakh crore in the next five years.

It is not that we are in a race. We have announced expansion plans to augment our production capacity, a Tata steel official said.

Realising that big brothers could outplay them, other domestic players too have jumped in the fray by announcing their expansion plans.

They are JSW Steel, Jindal Steel and Power Ltd, Essar Steel, Sterlite Industries Limited, Sunflag Steel, Bhushan Steel and TI Groups.

Together, these groups are believed to be ready to inject nearly Rs 1 lakh crore in the steel sector.

-PTI