The Union steel ministry wants to promote mass pelletisation in the next five years to make use of iron ore fines that are currently exported for want of domestic takers. Union steel secretary RS Pandey told FE that the ministry has decided to call for investments to set up pellet plants aimed initially at sponge iron makers.
Goutam Kumar Basak, executive secretary of the joint plant committee set up by the Centre to formulate guidelines for production and distribution of steel materials, said there are 340 sponge iron units across the country with a capacity of 22 million tonne, but producing around 16-18 mt. If all of them used pellets, which can be manufactured by the owners of sponge units themselves or third parties, it would call for an investment of around Rs 13,500-14,000 crore.
Only Essar Steel and Kudermukh
Iron Ore Company Ltd manufacture pellets in India.
Basak said while Indian manufacturers use lump iron ore costing Rs 1,100 a tonne to make sponge iron, the Chinese, using Indian iron ore fines costing Rs 400 a tonne, have become the world?s largest producers of steel.