Piyush Goyal urged the industry to invest in R&D to minimise the cost of pre-fabricated steel structures.
| Photo Credit:
LEON KUEGELER
Odisha targets to more than triple its steel capacity to 130 million tonnes (mt) from current 41 million tonne by 2030 and emerge among the top five industrialised States by attracting fresh investment in downstream steel processing units.
The State government is committed to securing raw materials, providing land, ensuring connectivity through roads, railways and providing electricity and water to meet the specific needs of industries operating in this vital sector, said Mohan Charan Majh, CM of Odisha.
“We are in the process of auctioning another eight major mineral blocks, with a combined resource of 323 million tonnes. Additionally, we plan to auction 22 more blocks by March 2026,” he said at the ‘India Steel 2025’ conference in Mumbai on Friday.
Odisha leads India in terms of the estimated value of all minerals production, contributing to 47 per cent of the national output.
By 2030-31, India’s iron ore consumption is anticipated to grow to 340 mt . In this period, Odisha is poised to contribute about 240 to 245 mt of iron ore, thereby elevating the State’s share from the current 58 per cent to an impressive 70 per cent, he added.
Odisha’s contribution of 178 mt of iron ore, 3.18 mt of chromite, and 269 mt of coal last fiscal. There are 54 integrated steel plants in Odisha with a total installed capacity of about 41 mt per annum.
Support domestic supply-chain
Meanwhile, Union Commerce Minister, Piyush Goyal disagreed with the industry target to achieve 300 million tonnes of production capacity by 2047 and urged it to aim for 500 mtpa given the country’s rapidly growing economy.
Goyal urged the industry to invest in R&D to minimise the cost of pre-fabricated steel structures. He argued that the benefits—such as faster construction and reduced pollution—could make the higher upfront costs worthwhile in the long run, he said.
The government is negotiating free trade agreements with several countries including the European Union, which comprises 27 nations. These agreements are crucial for expanding India’s access to international markets, particularly for its cost-effective and high-quality steel products, he said.
Goyal stressed on the need for India’s steel industry to focus on sustainability across the value chain from raw materials to manufacturing. At the same time, he cautioned that while pursuing higher standards, the industry must ensure that it remains cost-competitive, with the highest efficiency and lowest costs.
He emphasised the importance of supporting local manufacturers, particularly for equipment that is not yet made in India. There are vulnerabilities that arise when a country depends too heavily on global supply chains. He pointed out that supply chains can face sudden disruptions, such as shipping issues, freight cost surges, or crises like the oil shortage, which can jeopardise industries relying on imported goods.
Goyal made a direct appeal to the steel industry, asking them to prioritise Indian suppliers and reduce the tendency to import when local alternatives exist. This, he said, would support domestic companies and strengthen the local manufacturing ecosystem. He highlighted that countries around the world, including advanced nations, are increasingly focusing on Atmanirbhar Bharat (self-reliance), with many restoring their manufacturing processes to build more resilient economies, he said.
Published on April 25, 2025
