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30 May 2012

Overseas Investment in Steel Sector


The Minister of Steel, Shri Beni Prasad Verma has said that there is a net increase in foreign direct investment inflows into the country in the metallurgical sector, including steel sector, during the last three financial years. The details are given below:

Year
Amount of FDI inflows *
In Rs. Crores
In US$ Million
2009 – 10
1,999.30
419.88
2010 – 11
5,023.34
1098.14
2011 – 12
8,242.42
1,765.07
(*Source: Department of Industrial Policy & Promotion, Ministry of Commerce)


Following are the major investments proposed by foreign steel producers in the Indian steel industry in the last three years:

Proposals to set up steel plants in India*
Producer
Proposed
State
Proposed
Annual
Capacity
Proposed
Investment (Rs. Cr.)
Posco
Orissa
12 mtpa
52,000
Posco
Karnataka 
6 mtpa
32,000
Arcelor-Mittal
Orissa
12 mtpa
40,000
Arcelor-Mittal
Jharkhand
12 mtpa
50,000
Arcelor-Mittal
Karnataka 
6 mtpa
30,000
NMDC-Severstal
Karnataka
3 mtpa
Both will jointly invest
Rs. 9,000 crore
Tata Steel-Nippon Steel
Jharkhand
60,000 tonnes
2300

(*Source: Joint Plant Committee)

·         In a written reply in the Lok Sabha today Shri Verma said, in addition to these, the following are some of the major investments made by foreign investors in the Indian steel industry:
·         Acquisition of 14.99 per cent stake in JSW Steel Ltd. by JFE Holdings of Japan.
·         Acquisition of 29 per cent stake in Uttam Galva Steels Ltd. by Arcelor-Mittal.

The Minister said, in order to monitor and coordinate various issues concerning major steel investments in the country, an Inter-Ministerial Group (IMG) has been constituted. Inter Ministerial Group (IMG) on steel sector is a forum to coordinate, monitor and review issues affecting major steel sector investments. The individual issues raised during the IMG meetings are further dealt by the concerned Ministries/Departments and State Governments in accordance with the provision of the extant rules and policies.

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