IC 8055 India's Iron And Steel Industry ? Introduction And Summary

India is one of the fortunate countries that has substantial reserves of many raw materials for producing steel; however, for historical and economic reasons these resources have not been aggressively developed until recently. Production of steel on an industrial scale started in 1912, but annual output was below 1 million tons3 in 1938 and about 1,500,000 tons in 1951. Expansion of the steel industry became one of the objectives of India's economic planning after independence in 1947. The Planning Com¬mission's 1951 report emphasized the importance of steel production, but financial obstacles, emphasis on river valley projects, and priority for increased food production in the First 5-Year Plan (1951-56) did not permit large-scale expansion of steel capacity. The 1956 planned target for crude steel, only 1,650,000 tons, was actually exceeded by production of 1,737,900 tons. In the Second 5-Year Plan (1956-61), however, construction of steel plants received a high priority. Currently three new steel plants, each with an annual capacity of approximately 1 million tons of steel, are nearing completion in Rourkela, Dorgapur, and Bhilai. Simultaneously, the two privately owned steel plants and the small State-owned plant in Mysore have been enlarged and modernized. As a result, India's crude steel capacity will be about 6 million tons in 1961, almost evenly divided between Government-owned and privately owned plants. Actual production in 1960 totaled 3,254,000 tons compared with 2,434,000 tons in 1959. Assuming that the population will be 430 million and that capacity production will be achieved, the 1961 per capita steel output will be only 31 pounds compared with 200 pounds for Japan in 1959. Some Indian experts feel that development of steel-consuming industries merits greater emphasis in the Third 5-Year Plan (1961-66) than expanding existing steel-producing facilities. Nonetheless, the Third 5-Year Plan calls for a 10 million ton annual capacity by 1966 to be achieved by expanding the Government-owned plants in Bhilai, Durgapur, and Mysore, and by establishing a new integrated Government plant in Bokaro, in the State of Bihar.