Updated By: LatestGKGS Desk
About Indian Secondary Steel Sector: Details, Composition, Significance, Highlights
About Indian Secondary Steel Sector: Details, Composition, Significance, Highlights
The strong performance of the secondary steel sector has given a significant boost to India’s steel production. It has brought about a robust in steel manufacturing unit.
The National Steel Policy 2017 has set a target of 300 million tonnes per annum of production capacity by 2030. India’s production capacity has already reached 137.97 million tonnes (MT) in 2017-18.
At present, India's growth pattern is expected to rise to the second position after China.
The secondary steel sector main significant aspects is that it reaches out to millions of people in the rural areas, meeting rural demand. Growing in conjunction with the primary steel sector, the secondary steel sector holds enormous potential for growth and opportunities in India.
The secondary steel sector has certain specific advantages over the primary steel sector such as lower capital and land requirements and the capability to produce special sections and customised products.
The secondary steel sector comprises various sub-sectors including sponge iron units, EAFs, IF units, re-rolling mills, cold rolling mills, galvanizing units, wire drawing units, and tinplate producers.
These sub-sectors have an annual production capacity of less than 1 million tonnes and meet the country’s demand for value-added steel products.
The sector had a modest beginning with a small steel rerolling mill (SRRM) unit in 1928 in the industrial town of Kanpur, Uttar Pradesh. From there, the industry grew impressively all over India. By 1968, the secondary steel sector grew to produce nearly 5 million tonnes of steel annually.
The initial three clusters of the sector included Kolkata in West Bengal, Mumbai in Maharashtra, and Mandi Gobindgarh in Punjab.
