The Indian market has huge growth potential in terms of steel consumption. As per National Steel policy2017,the growth in steel sector in term of installed capacity of crude steel production has been anticipated to reach 300 Million Ton by 2030-31 from a level of 125 million ton in 2016-17.Domestic steel sector contributes around 2% of country's GDP and employs over 6 lakh people directly and indirectly about 20 lakh people. To keep up the target, the Govt of India is actively encouraging steel consumption so that the steel industries acts as the locomotive for overall economic growth of the country. In addition, the country's rich mineral resources and availability of skilled labour makes it an attractive destination for the investment. On the other hand India will be able to derive huge benefits in term of employment generation, revenue and FDI in flow. Govt is aiming at targeting consumption of steel through various ambitious scheme such as Make in India, Digital India, Smart cities etc. India's present per capita steel consumption is 64kg against word's average of 204 KG. Therefore, for nation building and country's economic growth, enough scope is there to bring per capita steel consumption to 160kg by 2030 (As per National Steel Policy-2017)from the present level of 64 kg.
When we talk about the growth potential of Odisha , the state is considered to be mineral hub of India with 92% chromite,92% Nickel,52% Bauxite,44%Manganese,33% Iron Ore and 24% Coal reserves of the country. The state is the largest producer of stainless steel in the country and has more than 20% of steel making capacity of the country. Major Steel producers like TATA steel, Bhusan Steel Limited (BSL),Bhusan Power and Steel limited(BSPL), Jindal Stainless Steel(JSL)and Jindal Steel and Power Limited have their mother plants in the sate besides ESSAR Steel Limited which has started pellet production in the 1st phase to be followed with setting up an integrated Steel Plant. Also, Jindal Steel works (JSL )has proposed a mega steel project of 10 MTPA with 1000 MW power plant which is active consideration of Govt.. In fact, an exclusive Directorate has also been established recently to facilitate further growth in the steel sector.
Surrounded by these large mother plants, a National Investment and Manufacturing Zone(NIMZ) is being developed at Kalinganagar. Spread over 160sq km, the zone is envisaged to become a self contained ecosystem along with residential, commercial and social amenities and will enable the potential investors for setting up value added downstream facilities.
Apart from the mega steel projects, our state has also number of small and medium steel plants which are producing steel through secondary route ie. SIP-EAF/IF-Rolling mills. These units are also contributing a lot in enhancing the steel production of our state. Also, there are number of standalone sponge Iron Plants and Pellet plants producing various input materials required for steel making .
The State has also undertaken significant strides in providing a hassle-free and prompt doing business environment for industries setting up. Besides one Steel Directorate has been set up on 15th of July 2016 as a composite Directorate under the administrative control of Steel and Mines Department to focus among others on following key activates.
The Directorate has also engaged experts having experience in Steel Industries to facilitate up scaling the Iron & Steel Industries in the state.
The Union steel ministry is confident that the Kalinganagar industrial complex in Odisha can contribute 20 per cent of the country's targeted 300 million tonne steel capacity by 2030."Odisha is blessed with all kind of minerals. There is scope for a steel hub here. We are expecting at least 20 per cent of the new capacity to meet the targeted 300 million tonne steel output capacity by 2030-31 will come from Kalinganagar", said Union steel minister Chaudhary Birender Singh, who attended the Steel Consumers Council meeting at Bhubaneswar some times in June 2017. The NIMZ is expected to attract investment of Rs 1.5 lakh crore and generate employment for 4,50,000 people after its completion. The manufacturing zone is expected to attract investment from varied sectors like metal and mines, automotive, steel, and downstream industries. The steel ministry is eyeing to grab about 10 per cent of the Rs 4 lakh crore infrastructure budget allocated to various sectors by maximising the utilisation of the steel. The ministry is also eyeing the Pradhan Mantri Awas Yojana as an option to imp