Question

How are integrated steel plants different from mini steel plants? What problems does the industry face? What recent developments have led to a rise in the production capacity?

Answer 1

Integrated Steel Plants:

• An integrated steel plant is large, in one complex everything is handled – from shaping, rolling, steel making, putting together raw material.

Mini Steel Plants:

• Mini steel plants are smaller. They produce mild and alloy steel of given specifications. They have re-rollers that use steel ingots as well. They use sponge iron, steel scrap and have electric furnaces.

Some of the problems faced by Steel Industry are:

India has not reached its full potential though it is an important iron and steel producing country in the world. The reasons are mentioned below:

• Poor infrastructure
• Irregular supply of energy
• Lower productivity of labour
• High costs and limited availability of coking coal

Rise in Production Capacity

• Almost the same quantity of steel was produced in the 1950s by India and China.
• Today China is both the world’s largest consumer and the world’s largest producer of steel.
• India accounted for 2.25% of the global steel trade and was the largest exporter of steel in 2004.
• With the efforts of private entrepreneurs, aided by Foreign Direct Investment (FDI), and Liberalisation, the steel industry in India received a big boost.
• The maximum concentration of iron and steel industries is in Chotanagpur Plateau.
• This region has relative advantages for the development of this industry.
• Some of them advantages are vast growth potential in the home market, cheap labour, availability of high grade raw materials in close proximity, and low cost of iron ore.
• Through Steel Authority of India Ltd. (SAIL), most of the public sector undertakings market their steel.