Being one of most essential industries in India, Iron and steel industry has helped in generation of several subsidiaries and small scale industries. It also supports transport, fuel, power and communication industries. It is estimated that Indian iron and steel industry exports around 50% of total production. Production in these industries has been increasing for last 20 years. Also there is an increase in export of iron ore. Experts believe that reduction in export duty has helped iron and steel industry grow at a rapid pace. There are several players that operate in this industry in India. Major ones include Tata Steel, SAIL, Jindal Steel and power limited, Essar Steel and Bhushan Power and steel.
History of Iron and Steel Industry in India
Since independence, Indian iron and steel industry has been growing at a steady pace. Establishment of first steel plant in India goes back to 1870, when first blast furnace was built in Kulti, West Bengal and steel was first time produced in 1905. However production on a noticeable large scare started in 1907 when steel plant was established in Jamshedpur, Bihar, which started production in 1912. Post Jamshedpur other steel plants were established in Bhadrawati and Burnpur. However it was only after independence that steel industry was able to establish itself in true sense. Plants in Bhilai and Bokaro were established with help from Soviet Union and Durgapur and Rourkela came up with British and West German partnership.
Production Scenario of Iron and Steel Industry in India
This industry is classified as heavy industry as all its raw materials are heavy and massive. They employ iron-ore, lime stone and coking coal in huge quantities. Efficient transport system to carry raw materials and finished product is a necessity. Also proximity to raw materials specially coal and iron are helps in economic production. Area bordering west Bengal, Jhanrkhand, Orissa and Madhya Pradesh is natural hub of steel production centres in India. It is a key industry as other heavy and allied industries depend on it.
Heavy investment is required for iron and steel industries also infrastructure, communication networks and transport system. Government has implemented various industrial policies and other incentives to boost growth and more participation in this industry. As a result numerous new plants and new players have emerged in this segment which in turn has resulted in modernization of these units, economic and cost effective implementation of advanced technologies. These factors combined with growing demands from automobile, infrastructure and other sectors has given iron and steel industry of India a global recognition.
Tata Steel, one of the most essential company in India, has acquired Corus, the UK-Dutch steel company. Moreover, Arcelor, a French Steel industry has been acquired by Mittal Steel, owned by L.N. Mittal resulting in the formation of Arcelor Mittal, which is the top most global steel...