Chapter 3

Chapter 3
Working Capital Management of Rashtriya Ispat Nigam Limited and Bhushan Steel
Limited – Profile Study
Table of Contents
Chapter 3 : Working Capital Management of Rashtriya Ispat Nigam Limited and

Bhushan Steel Limited - Profile Study
1. Introduction...................................................................................................................2
2. Profile of Indian Iron & Steel Industries.......................................................................2
3. History of Indian Iron & Steel Industry........................................................................4
4. Profile of Selected Major Companies in Steel Industry................................................7
4.1. Rashtriya Ispat Nigam Limited ( RINL )...............................................................7
4.2. Bhushan Steel Limited ( BSL )..............................................................................8
4.3. Jindal Steel Works (JSW)......................................................................................9
4.4. Jindal Steel and Power Ltd. (JSPL)......................................................................10
4.5. Steel Authority of India Ltd. (SAIL)....................................................................14
4.6. TATA Steel Limited............................................................................................15
5. National Steel Policy 2012..........................................................................................18
6. The national Steel Policy 2017...................................................................................20
7. Production of Finished Steel in India..........................................................................24
Table of Figures
Figure 1 : Trend of Gross Income.................................................................................................................9
Figure 2 : Trend of Net Worth...................................................................................................................10
Figure 3 : Breakup of Income.....................................................................................................................11
Figure 4 : Distribution of Gross Income.....................................................................................................11
Figure 5: Production of Steel.....................................................................................................................31
Figure 6 : Export of Steel...........................................................................................................................32
Figure 7 : Steel Export and Import comparative in india...........................................................................32
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Chapter 3
Working Capital Management of Rashtriya Ispat Nigam Limited and
Bhushan Steel Limited – Profile Study
1. Introduction
The iron and steel industry in India dates back more than a century. In India's steel
industry, there are more than 3500 different sorts of steel. However, these can be divided
into two major groups: flat products and long products. Plates and hot rolled sheets, such
as coils, are examples of flat products. Slabs are the source of them. The construction of
ships is one of the main uses of steel plates. Bars, rods, wires, ropes, and piers are
examples of long products. Due to their shape, these are referred to as lengthy. Billets and
flowers are used to create long items. These are primarily utilised in building,
construction, and railroad tracks. The sector is fundamental. The foundation of any
economy is steel. The iron and steel industry has a significant impact on economic
growth, as evidenced by both industrialised and emerging nations' experiences. It is a
fundamental sector. The iron and steel sector is a foundational sector for many other
industries, including engineering, machine tools, shipbuilding, railways, transport,
equipment, and electricity. Iron and steel consumption increased in all of these industries.
One may argue that the iron and steel sector is the mother sector. The quantity of steel
consumed and the GDP of a nation's economic growth are closely correlated. It indicates
a direct link between economic investment and the expansion of the steel sector.
Therefore, the growth of the iron and steel sector has a significant impact on the quick
industrialization and economic development of a nation.
2. Profile of Indian Iron & Steel Industries
The World Steel Association predicted that India's steel demand will increase by 6.1
percent in 2022 and 6.7 percent in 2023. India's growth rate remains the highest among
the major global steel consumers even if it has been marginally lowered down from the
April projection for this year.
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While economists in western nations are discussing a recession, in India they are
debating the size of the economic growth rate in FY23. We have a good forecast for steel
demand in India in FY23 due to the close ties between steel and the underlying economy
According to Jayanta Roy, senior vice president and head of corporate sector ratings for
the Indian credit rating agency ICRA group.
Government capital expenditures, such as those for roads, railroads, and water and
sanitation projects, as well as a recovery in the car industry, are what are driving India's
demand. As we predicted at the beginning of the year, this will bring the growth in steel
demand to roughly 7–7.5% in this fiscal year. However, the rest of the world's steel
demand will remain muted due to deteriorating Chinese real estate markets, rising energy
prices in Europe, and fears of a recession in the EU and the US Roy said.
According to Worldsteel, global steel demand will decline by 2.3 percent this year to 1.79
billion metric tonnes, with China's demand falling by 4 percent and the EU's demand
falling by 3.5 percent.
Early in the fiscal year, domestic steel demand decreased as prices reached an all-time
high and as a result of the typically weak monsoon season. However, consumption is
anticipated to increase as a result of falling steel prices and the impending peak building
season.
A senior official from a significant infrastructure company stated that there is no reason
to doubt that India's infrastructure demand will be very strong in the second half of the
fiscal year, adding that steel prices have come down significantly and although they
have not returned to their previous levels, they are reasonably okay for us to carry on
with our projects and National Infrastructure Pipeline spending will continue to boost
steel demand.
Domestic blast-furnace grade rebar prices in India are down by 26 percent from their all-
time high of INR 76,000/t in early April, while domestic hot-rolled coil prices are down
by 28 percent after reaching a record high of INR 78,500/t in early October.
According to the Society of Indian Automobile Manufacturers, domestic passenger

vehicle sales reached record highs in the first half of the fiscal year, totaling 1.94 million
units (Siam).
The demand is becoming better each month. There are several committed infrastructure
and building projects, but individuals stopped working on them because they were not
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financially viable; however, now that demand is there both now and in the future, a
representative of a significant steel manufacturer remarked.
The official continued, In the second half, we'll not only see strong domestic demand,
but worldwide demand could also rise, and our capacity utilisation will also be much
better.
Due to the implementation of an export tax in late May, India's finished steel exports
have decreased by more than 50% year over year from April to September, yet
production and consumption have climbed by 8% and 11.5 %, respectively.
Hypothetically, even if export duties were eliminated, there would still be no demand
from foreign markets. The challenge with exports will continue because there is no sign
of improvement in sight, but the fact that our domestic markets are robust and we do not
have an inventory overhang is actually a blessing in disguise, according to a significant
steel exporter. They continued, Prices may slightly correct in the future, but demand will
be strong.
3. History of Indian Iron & Steel Industry
India had been producing iron for thousands of years, and as late as 1810, Indian
steel was of higher quality than British steel. The Tata Iron and Steel Company began
production at Sakchi in 1913, building on the foundation laid by Jamsedji Tata, whose
sons raised the enormous sum of INR 23 million to establish the company, primarily
from Bombay merchants, several maharajahs, and other wealthy Indians who supported
the movement for Indian independence. The indigenous industry had declined due to the
consolidation of the British raj. Till the 1950s, Tata would control the Indian steel
market. The British company Burn & Co. founded the Indian Iron & Steel Company in
west Bengal in 1918 with the intention of competing as a steel producer. However, the
early 1920s saw a decrease in steel prices, and until 1937, the company produced solely
pig iron. The preventive measures taken by the government helped to lessen the severe
downturn that the iron and steel sector experienced following World War I. The sector
kept moving forward steadily.
The Indian market was split 70 to 30 between British producers on the one hand and the
Tata company on the other starting in the late 1920s when the British government
instituted a system of tariffs that protected British and Indian steel while raising barriers
against imports from other countries, effectively excluding indigenous newcomers. By
1939, the Tata Works, which at the time included modern-day India, Sri Lanka, Pakistan,
Bangladesh, and Burma, were producing 75% of the steel needed throughout the Indian
Empire.
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The export of Indian pig iron rose in the late 1930s as European rearmament drove up the
price of iron and steel, and two minor companies started to directly compete with the Tata
Company in the manufacturing of steel. The first was the Mysore State Iron Works,
which the maharajah of Mysore had established in 1923 to make pig iron at Benkipur,
now Bhadravati. The second was the Steel Corporation of Bengal, which the Indian Iron
and Steel Company established as a subsidiary in 1937, the same year that it acquired the
assets of the Bengal Iron and Steel Company, which had gone bankrupt. In 1953, the
parent firm reabsorbted the Steel Corporation of Bengal. During World War II, all three
businesses benefited from the British link. Between 1940 and 1945, annual production
increased from 1 million tonnes in 1939 to an average of 1.40 million tonnes.
The three biggest iron and steel companies in 1947, when India gained independence as
the largest but not the only successor state to the British raj, had a combined capacity of
just 2.5 million tonnes. While the demand for iron and steel was increasing, a large
portion of their plant was now more than three decades old and in in need of maintenance
and replacement.
New ventures in the iron and steel industry were to be undertaken only by the federal
government, but existing ventures would be permitted to stay in the private sector for the
first ten years, according to the terms of the new government's Industrial Policy
Statement of 1948, which was confirmed in the Industries Development and Regulation
Act three years letter. Therefore, under the First Five Year Plan, which ran from 1951 to
1956, government monies were used to aid Tata Iron and Steel and Indian Iron & Steel in
growing and modernising while still operating in the private sector. Regarding new
initiatives, the government and the German steel producers Krupp and Demag inked a
contract in 1953 to build a publicly owned integrated steel plant in Rourkela, Orissa, to
utilise the iron ore produced in Barsua and Kalta. After unsuccessful requests for aid
from Britain and the United States, Krupp and Demag were selected. However, they were
removed from the project by 1959 after the Estimates Committee of the Lok Sabha, the
lower house of the Indian Parliament, determined that receiving investment funds from
them was equivalent to borrowing at a 12% interest rate.
The government established Hindustan Steel Ltd. in 1954 as a fully state-owned
corporation in charge of running the Rourkela facility in order to fulfil its end of the
bargain. Under the Second Five Year Plan, which began in 1956 and ended in 1959 when
the factory was commissioned, Hindustan Steel was in charge of two additional plants at
Bhilai in Madhya Pradesh and at Durgapur in West Bengal.
All three of Hindustan Steel's plants, which were situated to take advantage of a supply of
iron, and the mines that supplied them were taken over by Hindustan Steel.
This policy of locating steel production close to raw material sources contrasted with the
market-related location policies of businesses in more developed steel-producing nations,
such as the United States, and reflected the relatively small and dispersed nature of the
domestic steel market at the time.
One of Hindustan Steel's other significant endeavours was the Alloy Steel Project, which
was established in 1964 and was situated in Durgapur as well. Along with producing
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steel, Hindustan Steel was also responsible for acquiring raw materials. In addition to the
previously stated iron ore mines, its subsidiaries also included limestone and dolomite
mines and coal washeries. In Rourkela, it also ran a fertiliser plant.
In India, the production of steel increased from roughly one million tonnes annually in
the 1940s to three million tonnes in 1960, and then to six million tonnes just four years
later thanks to the modernisation of two private sector leaders and a governmental sector
investment programme. From 1.6 million tonnes in 1950 to almost five million tonnes in
1961, the production of pig iron increased even more dramatically. The Mahalanobis
model's expansion of the engineering and machinery sectors, which was in turn fueled by
the rising desire to boost production volume and quality, had an impact on both sides of
the iron and steel industry. The most recent projection for Bokaro Steel Limited, an iron
and steel business founded a year earlier, came from Hindustan Steel in 1965. However,
communication between the two businesses remained primarily as a result of a deal
wherein the chairman of each business was appointed as a part-time director of the other.
From 1958 to 1963, Hindustan Steel's first five years of production, losses increased
progressively from INR 7.51 million to INR 260 million. It generated a modest profit in
1965 and 1966 before going back into the red and remaining there until 1974, the final
year the business operated under that name. The company cited a number of factors for
these underwhelming results, including losses at the steel plants in Durgapur, Steel
Alloys Projected, and Rourkela; an increase in the interest rate on government loans; an
increase in the provision for depreciation; and the high costs of imported plant and
equipment.
Once the phase of import substitution was complete and the mid-1960s droughts had
forced a diversion of resources from industry, the rate of growth of the iron and steel
industry and of the engineering and machinery producing sectors, with which its fate was
so closely linked, significantly decreased. Pig iron production increased from seven
million tonnes in 1965 to ten million tonnes in 1985, while steel production increased
from six million tonnes to twelve million tonnes during the same time period. Pig iron
production had risen so dramatically in the 1950s. Although the technical issues were
distinct, the industry suffered from a legacy of antiquated and ineffective plants and
machinery, as well as from state interference to keep domestic prices low as an indirect
subsidy to steel users.
Since 1965, the Indian government's policy has been to use its ore more as an export,
earning foreign currency and aiding in the reduction of the nation's persistent deficit on
its trade balance. To satisfy a rising number of foreign markets, ore production expanded
from 18 million tonnes in 1965 to 43 million tonnes in 1985.
With Hindustan Steel's growth and diversification, Bokaro's independent establishment,
and the start of planning for new plants in Salem, Vishakhapatnam, and Vijyanagar, it
became increasingly obvious that new forms of coordination were required for public
sector iron and steel production in order to avoid duplication and better allocate
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resources. In order to serve as a holding corporation, similar to more established but

comparable organisations in Italy and Sweden, The Steel Authority of India Ltd. was
founded in January 1973 specifically for this purpose. When the Indian Iron and Steel
Company was nationalised, SAIL gained control over all iron and steel production, with
the exception of the venerable Tata Iron and Steel Company and a few small-scale
electric-arc furnace plants. This gave the new company a firm foundation.
SAIL did not have a good decade in the 1980s. Between 1982 and 1984, it experienced
losses, but the following two years saw a return to profitability. Tata Iron and Steel,
meanwhile, regularly made money. Even though the Indian steel industry had a 15.5 mt
total capacity by 1986, only 12.8 mt were actually produced, of which 7.10 mt were
produced by SAIL. Thus, after years of exporting Indian steel, imports of 1.50 mt were
required to satisfy the overall demand. All of India's major steel factories, with the
exception of Vishakhapatnam, had outdated machinery and equipment by 1988, and
Indian steel prices were the highest in the world.
SAIL continued to be a key component of governmental goals for industrial development
during this time period and remained in the public sector. The industry became essential
to the economy thanks to the nation's supplies of iron ore and other raw resources for
making iron and steel. India possessed 10.6 billion tonnes of recoverable iron deposits at
the start of the 1980s, a natural endowment that would take 650 years to exhaust at the
time's production rates. However, it was estimated that this total's high-grade ore—ore
with an iron content of at least 65 percent—would likely run out in 42 years, even if it
still accounted for around one-tenth of the global supply. It was difficult for SAIL to keep
up production, let alone increase it, in large part due to uncontrollable external factors.
Any increase in the price of coal, ferro-manganese, limestone, or iron ore reduced the
profitability of the Indian steel industry because the procurement of raw materials
typically accounted for 30% of production costs. During the early half of the 1980s,
prices for things, for instance
Materials increased by 95 to 150 percent while electricity costs increased by 150 percent.
Other state enterprises imposed the majority of these increases.
It also didn't help SAIL that its steel facilities had to invest heavily in desulphurization
due to the high sulphur content of Indian coal. In fact, the industry experienced ongoing
issues trying to run blast furnaces that were meant to use low-sulfur coking coal.
Later, the private sector adopted the more efficient method of producing sponge iron
from non-coking coal and turning it into steel in electric arc furnaces, albeit by 1989,
only 300,000 tonnes had been generated in this manner. India's basic output costs of INR
6,420 per tonne in 1986 were competitive with the averages for West Germany, Japan,
and the United States (INR 6,786 and INR 6,438, respectively). The implementation of
levies, which increased Indian steel's price per tonne by nearly 30% and included excise
duties, a freight capitalization premium, and a Steel Development Fund fee, was what
ultimately prevented Indian steel from being competitive.
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SAIL was not any more able to strike the ideal balance between supply and demand,
between growing output and enhancing quality by modernising, and between escaping
from its history of antiquated plant and equipment than huge steel corporations in other
nations.
4. Profile of Selected Major Companies in Steel Industry
4.1. Rashtriya Ispat Nigam Limited ( RINL )
Using German and Soviet technology, the Visakhapatnam Steel Plant, often known as
Vizag Steel, is an integrated steel manufacturer in Visakhapatnam, India. In just four
years, the business went from a loss-making sector to one with a 3-billion-dollar annual
revenue. On November 17, 2010, the Vizag Steel Plant was awarded Navratna status. Out
of the 252,000 tonnes of salable steel produced, 214,000 tonnes were manufactured in
August 2010 by the firm, which was founded in 1971 and concentrates on producing
value-added steel. In India and Asia Minor, it is the biggest single-site facility (or south
and east Asia combined).
The late Indira Gandhi, who was India's prime minister at the time, revealed the
government's choice to build a steel mill at Visakhapatnam in the Parliament on April 17,
1970. By appointing a site selection committee in June 1970, planning got underway. The
committee's report was later approved. Gandhi formally erected the plant's foundation on
January 20, 1971. In February 1971, consultants were hired, and in 1972, feasibility
reports were delivered. On April 7, 1974, the first parcel of land was taken over. In
October 1977, M/s M.N. Dastur & Co. filed a proposal for 3.4 Mtpa of liquid steel after
being hired as consultants to prepare the complete project report in April 1975. A revised
project was developed in response to the government of the former USSR's offer of
support. For a facility with a 3.4 Mtpa capacity, M/s M.N. Dastur & Co. created a
thorough project study in November 1980. A contract for the creation of working
drawings for coke ovens, blast furnaces, and sinter plants was signed with the USSR in
February 1981. With the first round of mass concreting, the foundation for the blast
furnace was erected in January 1982. At the same time, work on the local township's
building began.
Below are some data of the RINL
Trend of Gross Income
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Figure 1 : Trend of Gross Income
Trend of Net Worth
Figure 2 : Trend of Net Worth
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Breakup of Income
Figure 3 : Breakup of Income
Distribution of Gross Income
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Figure 4 : Distribution of Gross Income
4.2. Bhushan Steel Limited ( BSL )
The largest producer of auto-grade steel in India was Tata Steel BSL Limited,
formerly Bhushan Steel Limited. Tata Steel BSL Limited, has a debt to equity ratio of a
certain level (0.5 times more). The total debt held by the corporation is 10,686 crore. To
increase its capacity to 12 million tonnes annually, the company was spending Rs. 260
billion, from the approximately one million tonnes of installed capacity already in use.
On July 26, 2017, the former corporation began to face insolvency proceedings under the
2016 Insolvency and Bankruptcy Code.
The business changed its name from Bhushan Steel Limited to Tata Steel BSL Limited
on November 27, 2018.
This business is not affiliated with Bhushan Power & Steel (with Sanjay Singal as
Chairman & Managing Director).
with significant claims made against it by creditors, notably the Punjab National Bank.
The merger of Bamnipal Steel and Tata Steel BSL (formerly Bhushan Steel Ltd.) with
itself was approved by the Tata Steel board in April 2019.
Financial Administration
From Rs. 5 billion in 2001 to Rs. 40 billion in 2007, Tata Steel BSL's gross sales
increased. In 2007, it exported items worth Rs.12.57 billion and made net profits of
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Rs.3.13 billion. Steel for the automotive and white goods industries is among the
products it exports, and several industrialised nations are on the list of destinations.
The managing director of Tata Steel BSL Limited is Rajeev Singhal.
For the first time in India, hardened and tempered steel strips, high-tensile steel
strappings, and CRCA steel are now being produced at the Khopoli factory in
Maharashtra to meet the demands of the automotive sector.
Its Sahibabad factory in Ghaziabad, Uttar Pradesh, which were producing the widest
sheets in India for the automotive industry, has a 1700 mm mill. Its processes are highly
mechanised.
At its Meramandali, Dhenkanal complex in Odisha, Tata Steel BSL runs hot rolling mills
and creates hot rolled coils. Currently, the initial stage of building is being worked on.
With yearly revenues of Rs. 11, 800 crore, Bhushan Steel Limited (also known as BSL) is
one of India's top integrated steel and power producers (FY 13). The company, which has
its headquarters in New Delhi, India, aims to have an installed capacity of about 7
MnTPA (after the completion of phase III) for producing steel (4.7 MnTPA for primary
production and 2.2 MnTPA for secondary production) and 840 MW (including Bhushan
Energy Limited) for producing electricity. All of the company's manufacturing locations
are ideally situated in terms of accessibility to clients, raw materials, and export
infrastructure. While its downstream facilities are located in Sahibabad, Uttar Pradesh,
and Khopoli, Maharashtra, its integrated steel & power complex in Meramandali, Odessa,
comprises both upstream and downstream facilities.
The company's business activities cover the full steel value chain, from iron ore to
finished steel with the highest value-added. Bhushan Steel is a leading provider of OEM
grade value-added steel to the consumer goods and automotive industries. In addition, the
company's goods are used in the infrastructure sector and are exported to more than 30
other nations in addition to India.
4.3. Jindal Steel Works (JSW)
A branch of the conglomerate Jindal Group, Jindal Steel and Power Limited (JSPL)
is an Indian steel and energy corporation with headquarters in New Delhi. O. P. Jindal
Group, a US$17 billion, diversified organisation, includes Jindal Steel & Power Limited
(JSPL), which has an annual revenue of about US$4 billion. JSPL is a major player in the
infrastructure, oil and gas, mining, steel, and power industries. The JSPL, its group firms
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Jindal Power Ltd, Jindal PetroleumLtd., Jindal Cement Ltd., and Jindal Steel Bolivia are
led by Naveen Jindal, the younger son of the late O P Jindal. The business claims to
believe in the idea of self-sufficiency. Through backward integration using its own
captive coal and iron ore mines, the company manufactures steel and generates
electricity.
It is, nevertheless, India's third-largest steel producer by tonnage. The business produces
and markets sponge iron, mild steel slabs, ferro chrome, structural, hot-rolled plates and
coils, and sponge iron plants that are powered by coal. The business also generates
electricity.
A division of the O. P. Jindal-founded Jindal Group is Jindal Steel and Power (1930–
2005). One of the earliest iterations of his corporate empire was Pipe Unit Jindal India
Limited, which he founded in 1969 in Hisar, India.
.
While the government-run Navratna Coal India Ltd. was turned down, Congress MP
Naveen Jindal's Jindal Steel and Power received a coal field in February 2009 with
reserves of 1500 million metric tonnes. Large coal blocks were awarded to two private
businesses on February 27, 2009. One was over 300 mega metric tonnes, while the other
was over 1500 mega metric tonnes, both in Orissa. These blocks were intended for the
liquification of coal and had a combined value of well over Rs 2 trillion (on a short
scale). Jindal received one of these blocks in exchange. The Talcher coal field in Angul,
Orissa, was given to Naveen Jindal's Jindal Steel and Power in 2009, well after the
Center's own self-imposed deadline for coal block allocations. The Government allegedly
broke all rules to provide him coal fields, according to the opposition.
However, Naveen Jindal denied any misconduct. An Inter Ministerial Group (IMG) led
by Zohra Chatterji, Additional Secretary in the Coal Ministry, proposed cancelling a
block that had been given to JSW (Jindal Steel Works), a Jindal Group entity, on
September 15, 2012.
extending to beyond reaches Since change is the only constant in life, JSPL is committed
to advancing new technologies, adopting current ones, inspiring its workforce, and
raising the standard of living for people around us. Major growth plans are currently
being carried out while upholding these values:
4.4. Jindal Steel and Power Ltd. (JSPL)
One of India's largest steel makers, Jindal Steel and Power Ltd. (JSPL) has a major
presence in industries like mining, power generation, and infrastructure. As a member of
the US $ 18 billion diversified O. P. Jindal Group, JSPL continually looks for new
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business prospects by boosting production capacity, diversifying its investments, and

utilising its core competencies. Through backward integration from its own captive coal
and iron ore mines, the company generates affordable and effective steel as well as
power. Today, JSPL has a product portfolio that meets a range of needs in the steel
industry, from the widest flat goods to a variety of lengthy products. The company also
introduced huge size parallel flange beams in India and produced the longest rails in the
world, measuring 121 metres. Iron and steel as well as power and other are among the
company's segments. The company has production facilities in Patratu in Jharkhand,
Raigarh in Chhattisgarh, and Angul in Orissa. The company's machinery business is in
Raipur. On September 28th, 1979, Jindal Steel and Power Ltd. was formally established.
The corporation entered the power market in 1995 and established Jindal Power Ltd. to
work in the industry. The company's steel melting shop was closed as a result of the
explosion in May 1998. According to the arrangement's plan, Jindal Strips Ltd.'s Raigarh
and Raipur Divisions were separated from the business in 1999. They restarted operations
at the Steel Melting Shop in October 2009. The company began manufacturing Rounds,
an import substitute product, in Raigarh in May 2000 after commissioning the Round
Caster Unit there. Additionally, the business came into a contract with Maharashtra
Seamless Ltd for the yearly sale of 50,000 MT of Rounds. Additionally, they entered the
infotech industry and established Infovergix Technologies. Alloy Steel Rounds, a novel
value-added product used to create seamless tubes, were introduced by the company in
2001. The business and the Chattisgarh government struck an agreement for the
corporation to invest Rs. 6,400 crore over seven years in a variety of projects in the state.
The company began producing Universal beams and structures in 2011–2004, along with
value-added steel products like slabs, rounds, billets, and blooms. An MoU between the
corporation and the Chhattisgarh government was signed on January 7, 2005. They
signed an MoU with the Jharkand government on July 5, 2005. Additionally, they signed
a contract for a coal gasification facility at their intended six million tonne steel plant in
Orissa with S. African German Company. A revised Memorandum of Understanding
(MoU) was signed on November 3, 2005, with the state government of Orissa, increasing
the projected steel plant's output capacity from 2.00 million TPA to 6.0 million TPA. The
business and Bolivia signed a joint venture agreement in 2006 for the development of El
Mutun. To build a 2 million TPA cement plant and a 30 MW power plant in Raigarh at
an estimated cost of Rs720 crore, the business and the government of Chhattisgarh signed
a memorandum of understanding on March 30, 2007. The company's plate mill, with a
capacity of one million TPA, was successfully commissioned and put into operation in
April 2007. In Angul District of the State of Orissa, the business and the government of
Orissa inked an MoU for the establishment of a 6 Million TPA Integrated Steel Plant at
an estimated cost of Rs. 16 560 million. In Patratu, Jharkhand, the company started
production in wire rod mills with a 0.6 MTPA capacity and a bar mill with a 1.0 MTPA
capacity during the 2010–2011 fiscal year. Shadeed Iron & Steel Co. LLC (SISCO), a
business organised in accordance with the rules of the Sultanate of Oman, was bought by
the corporation through their 100% subsidiary Jindal Steel & Power (Mauritius) Limited
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Mauritius (JSPLM) in June 2010. Three months ahead of schedule, commercial

operations at the facility began in December 2010 after being commissioned in a record-
breaking amount of time. The company finished the micro blast furnace modification and
opened the steel melting shop in May 2010. (SMS - III). The two 135 MW units were
synchronised by the business under Phase I in May and September of 2010, respectively.
The 0.5 MTPA capacity slag grinding mill at Raigarh, Chhattisgarh, was finished by the
company in may 2010. This factory uses the slag from the blast furnaces I and II, and it
combines outside-purchased clinker with the slag to make cement. Production at the 0.6
MTPA medium and light section mill that the business built in Raigarh, Chhattisgarh,
began in January 2011. The business installed the first unit of a 135 MW captive power
plant in the steel mill that will be built in Angul, Orissa, in March 2011. At its Raigarh
Unit as of March 31, 2011, the company had installed capacity for 1370000 metric tonnes
of sponge iron, 3000000 metric tonnes of mild steel, 36000 metric tonnes of ferro alloys,
623 megawatts of power, 1670000 metric tonnes of hot metal/pig iron, 750000 metric
tonnes of rail and universal beam mill, 1000000 metric tonnes of plate mill, 60000 metric
tonnes of fabricated structures, 500000 metric tonnes of cement plant, and 600000 metric
The business started up the second and fourth units of a 135 MW power plant at Angul,
Orissa, and Dongamahua, Chhattisgarh, respectively, in January 2012. A total of 6 units
totaling 135 MW have already been put into operation. The contract between Jindal Steel
Bolivia (JSB), a division of Jindal Steel & Power Ltd., and the Bolivian government for
an investment of USD 2.1 billion in the El Mutun mines was terminated on July 16, 2012.
The termination follows the sending of a letter to the Bolivian government on June 8,
2012, notifying it of its intention to cancel the contract owing to noncompliance on the
part of the Bolivian government. According to the Joint Venture Contract's conditions,
the government of Bolivia had 30 days to remedy the problems; in the event that they
weren't resolved, JSPL would be entitled to dissolve the agreement within 7 working
days. The decision was made by the company after all efforts to address the problems and
move the project ahead were unsuccessful. Due to the Bolivian government's failure to
uphold its end of the bargain and JSPL's inability to continue the project, the contract has
been terminated. In 2007, JSPL and the Government of Bolivia agreed to invest USD 2.1
billion in the production of steel, DRI (6 million tonnes annually), and iron ore mining
pelletization (10 million tonnes annually) (1.7 million tonne per annum). The total
amount of foreign investment in Bolivia was the biggest ever. The first phase of the 6.0
million MT per year integrated steel factory at Angul, Odisha, was set to begin
commercial production of India's widest 5.0 metre wide plate mill on August 28, 2012,
according to Jindal Steel & Power Ltd (JSPL). The yearly capacity of this plate mill is 2
MTPA. The company's forward integration technique involves finishing the process
chain to create finished discrete plates with additional value. This 5 metre wide plate mill
is located in Angul. On September 5, 2012, Jindal Steel and Power Limited (JSPL) stated
that CIC Energy Corp., a Canadian listed coal company, had been bought by JBVI
through a merger with JBVI for about US$115 million (more than Rs 600 crore). The
transfer of control from CIC to JBVI has already been approved by the Minister of
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Minerals, Energy, and Water Resources of Botswana, where CIC has its coal mines. All
other merger-related approvals have also already been given, and the merger certificate
will be issued in the coming days to signify the completion of the acquisition. The
agreement will provide JSPL access to CIC's high-quality thermal coal, which is expected
to be more than 6 billion tonnes (approximately) and is located in the Greater
Mmamabula coalfield in SE Botswana (including Measured and Indicated resource of 2.4
billion tonnes). The agreement will allow JSPL the chance to access the highly profitable
and power-scarce South African Development Community (SADC) nations, and given
the vast resource, it will also give JSPL the chance to establish a Coal to Hydrocarbons
project. On the birth anniversary of its founder Shri OP Jindal, Jindal Steel & Power Ltd.
announced the commissioning of the largest Steel Melting Shop (SMS) and its Allied unit
of the 6.0 MTPA integrated steel plant in Angul, Odisha, on August 8, 2013. With the
commissioning of the Steel Melting Shop in its Angul project, JSPL has finished the first
phase's 2.5 MTPA capacity out of a total 6 MTPA capacity. In a general body meeting
conducted in New South Wales on October 18, 2013, the shareholders of Gujarat NRE
Coking Coal, the Australian subsidiary of Kolkata-based Gujarat NRE Coke, approved
the purchase of a controlling stake in the company by Jindal Steel and Power Ltd. (JSPL).
Through a transaction involving the issuance of convertible notes, placement of shares,
and an option to purchase additional shares in the future, the acquisition will allow JSPL
to acquire a majority position of 53.63 percent in Gujarat NRE Coke's Australian
subsidiary. With a 31.49 percent interest before to the acquisition, JSPL was Gujarat
NRE Coking Coal's second-largest shareholder behind the company's promoters. Over
650 million tonnes of coking coal are available in mines owned by Gujarat NRE Coking
Coal in Australia. On April 28, 2014, the 2 MTPA Integrated Steel Plant (ISP) in Sohar,
Oman, which is owned entirely by Jindal Shadeed Iron & Steel, was successfully
commissioned. The facility is the first and largest Steel Melting Shop (SMS) in Oman
and the third largest in the Middle East and Gulf Region. It uses cutting-edge technology
from M/s Danielli Italy. Over US$800 million has been invested in this integrated
complex by Jindal Shadeed. The 1.5 MTPA Gas-based HBI facility owned by Shadeed
Iron and Steel was purchased by JSPL in 2010 for US$500 million. On August 23, 2014,
Jindal Steel and Power (JSPL) stated that an international tribunal had ruled in favour of
Jindal Steel Bolivia on its investment in the El Mutn project in Bolivia, ordering Empresa
Siderrgica del Mutun to pay Jindal more than $22.5 million (ESM). The JSPL group's
installed generation capacity in the Raigarh belt reached 4294 MW with the completion
of Jindal Steel and Power's historic 2400 MW expansion project at Tamnar
(Chhattisgarh) in April 2015, achieving UMPP scale. On October 28, 2014, Jindal Steel
& Power Ltd. (JSPL), a wholly owned subsidiary of Shadeed Iron & Steel LLC (Jindal
Shadeed), and Bank Muscat inked an agreement to successfully close a USD 725 million
(about Rs 4440 crore) syndicated term credit facility. The facility was oversubscribed,
receiving commitments totaling more than USD 855 million compared to the USD 725
million in required commitments. With its Steel Melting Shop at the Raigarh facility,
Jindal Steel and Power Ltd. made history on June 15, 2015, producing a record-breaking
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10,000 tonnes of crude steel in a single day. This company's operational expertise in steel
production is demonstrated by the highest production based on DRI (Direct Reduced
Iron) and hot metal. The Dedicated Freight Corridor Corporation of India Limited
received the nation's longest rails, measuring 260 metres, from Jindal Steel and Power
Limited (JSPL) on October 2. (DFCCIL). The historic 350 Kilometre dedicated freight
railway network in India's eastern corridor will be built using the 260 metre long rails. On
October 27, 2015, Jindal Steel and Power Limited (JSPL) declared that it had teamed up
with the Bhasin Group to build Festival City, the highest composite steel structure in all
of India. The 33-story Festival City in NOIDA will have a world-class commercial
complex stretched across 9 lakh square feet that will be erected in 99 days, which is a
record for India. The "Mist" office tower's construction got under way on October 21 and
is expected to be finished on January 29, 2016. With the aid of 'Made in India' steel
produced by JSPL and employing cutting-edge international technology, the floors of
India's tallest composite steel structure will be constructed. In accordance with the
strategic cooperation, JSPL will give Festival City infrastructure solutions such E550
structural steel columns and beams, suspended concrete flooring system, Speedfloor for
slabs, and TMT Welded-mesh for slab reinforcements. A 1.4 MTPA Rebar Mill at Sohar,
Oman, has been officially opened, according to a 22 March 2016 announcement by Jindal
Steel and Power Limited (JSPL). The largest integrated steelmaker in Oman is Jindal
Shadeed of JSPL, which also operates the largest 1.4 MTPA Rebar Mill in the Gulf and
African region and the existing 2 MTPA SMS. The Board of Directors of Jindal Steel and
Power Limited (JSPL) approved the sale of the entire share capital and other securities of
the aforementioned entity in accordance with the share purchase agreement for an
enterprise value of Rs 6500 crore plus the value of the 1000 MW power unit of Jindal
Power Limited located in Chhattisgarh into a special purpose vehicle (SPV) in order to
transfer the same to JSW Energy Limited. The valuation is subject to a minimum of Rs.
4000 crore and the value of net current assets as of the closing date and is subject to
change based on the fulfilment of PPAs as specified in the agreement. The Board of
Directors of the company and Jindal Power Limited (JPL), a subsidiary of the company,
have in principle approved the restructuring involving JSPL and JPL. The Board of
Directors of the company also formed a committee of directors (Restructuring
Committee) to explore and evaluate various restructuring options available, including a
scheme of arrangement. The restructure will result in the separation of a 1000 MW power
plant that JPL owes into an SPV that is a subsidiary of JSPL, the establishment of other
SPVs that can be sold off, and improved group cohesion. This would also make sure that
these companies' businesses are run in the most efficient and economical way possible,
including by pooling technical distribution and marketing expertise to make better use of
resources and cut costs. The modern captive power generation facilities in Dongamahua
and Raigarh in Chhattisgarh have long-term linkage agreements worth 1.18 million
tonnes per year, according to an announcement made by Jindal Steel and Power Ltd.
(JSPL) on August 22, 2016. During the most recent coal linkage auctions, a long-term
coal linkage for a duration of five years was achieved. The long-term connection will
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increase the fuel security for the power plants by ensuring a consistent and guaranteed
supply of coal for the captive power plants. The first and only maker of "Head Hardened
Rails" for contemporary hi-speed trains and metros in India, Jindal Steel and Power
Limited (JSPL), declared that it has reached a historical milestone on September 6, 2016.
The significant accomplishment also elevates JSPL into the exclusive group of seven
international steel giants with the capacity to produce head-hardened rails globally. The
facility, which cost Rs 200 crore to build, was set up in technical cooperation with M/S
SMS MEER Germany and has a monthly delivery capacity of 30.000 MT of rails. In
order to obtain roughly 50% more hardness compared to a standard rail, head hardening
technology involves a unique heat treatment procedure that necessitates extremely precise
temperature control. The 6 MTPA Integrated Steel Plant at Angul in Odisha, which cost
Rs 33000 crore to build, was completed, according to an announcement made on May 28
by Jindal Steel and Power Limited (JSPL). In the recently finished coal linkage auctions
under the captive power sub-sector, Jindal Steel and Power Limited (JSPL) reported on
June 19, 2017, that it has won coal linkages totaling over 0.51 tonne per year. The captive
power plants the business runs for its steel-making operations will receive a consistent
supply of fuel from the coal links secured for a 5-year period. The company's three
captive power plants are situated in Raigarh, Dongamahua (Raigarh district), and Angul,
Odisha, where it uses its 810 MW CPP to power a 6 MTPA integrated steel complex. On
October 9, 2017, Jindal Steel and Power Limited (JSPL) declared that it has completed
the sale of oxygen plant assets to SREI Equipment Finance Limited for a price of Rs.
1121 crore. In accordance with the arrangement, JSPL sold its oxygen plant assets at its
integrated steel facilities in Raigarh, Chhattisgarh, and Angul, Odisha, for a total
consideration of Rs 1121 crore (including of taxes). Additionally, JSPL and SREI
Equipment Finance have agreed to a Lease Back Agreement for the assets of the oxygen
plants in order for JSPL to continue operating the respective plants' steel manufacturing
operations. The 6 MTPA integrated steel project at Angul, Odisha, was completed,
according to an announcement made by Jindal Steel and Power Limited (JSPL) on
December 26, 2017, with the completion of a 250 Ton Basic Oxygen Furnace (BOF).
4.5. Steel Authority of India Ltd. (SAIL)
One of India's major steel producers and one of the top government-owned
businesses awarded the distinction "Maharatna" title is Steel Authority of India Ltd.
(SAIL).
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The five integrated steel mills owned and run by SAIL are located in Bhilai, Bokaro,
Burnpur, Durgapur, and Rourkela. Three special steel plants are located in Bhadravati,
Salem, and Durgapur. With a pan-Indian distribution network of 37 Branch Sales offices,
10 customer contact offices, 49 warehouses & yards, and a huge distributor/dealer
network, the Central Marketing Organization (CMO) of SAIL has one of the largest steel
marketing setups.
The second-largest producer of iron ore in India is SAIL, which sources all of its needs
from captive mines. Among all Indian producers, SAIL has the largest selection of steel
goods, including products in the mild, special, and alloy steel categories in about 50
types, 500 grades, and 5000 dimensions.
SAIL recently increased its annual manufacturing capacity of saleable steel to over 21
million tonnes. The upgraded and expanded SAIL facilities at the Rourkela Steel Plant
(RSP), IISCO Steel Plant (ISP), and Bhilai Steel Plant (BSP) have been dedicated to the
country by the Hon. Prime Minister of India, Shri Narendra Modi. Following its
expansion, SAIL is also expanding its product offering to meet the demands of India's
expanding manufacturing and infrastructure sectors. In addition to aiming for higher
production, SAIL's strategic growth plan also addresses the need for cost competitiveness
through the elimination of technological obsolescence, adoption of cutting-edge
technology, energy savings, product mix enrichment, pollution reduction, development of
mines and collieries, implementation of customer-centric processes, and creation of
complementary infrastructure facilities.
SAIL frequently collaborates with the Indian government on important flagship

initiatives like Make in India. In addition to supporting defence indigenization, India's
push into space research, railways, power, and all other economic sectors, it has been
providing steel for India's prestigious national infrastructure projects. SAIL's steel finds
extensive use throughout numerous significant segments thanks to its quality, strength,
diversity, value, and performance. The ordinary man uses SAIL's products, specifically
SAIL TMT and SAIL JYOTI Galvanized products, extensively across the nation. SAIL is
the first company in the nation to introduce the NPB - 750 sections, which are prized by
architects and builders for their strength and affordability.
In all of its industrial endeavours, SAIL prioritises the environment alongside

productivity and financial success. SAIL Plants are implementing fresh, environmentally
friendly technology to lessen their long-term environmental effect through reduced
pollution and energy use as well as increased waste utilisation.
SAIL has been planning and carrying out CSR programmes from its start with the
underlying idea and credo to "make a real impact in people's lives." The business is
cognizant of the need to promote holistic development in rural regions and acknowledges
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the crucial role that enablers like income generation, women's empowerment, education,
skill development, health, and sanitation play in sustainable development.
There's a little bit of SAIL in everyone's life, the firm's slogan, represents how the
company has developed over the past 50 years and how the SAIL brand has solidified
itself in consumers' thoughts. The business philosophy of the corporation incorporates a
triple bottom line strategy that addresses the economic, environmental, and social
elements. This strategy reflects SAIL's commitment to create natural, human, and social
capital and use its strength to advance India's development.
4.6. TATA Steel Limited
One of the biggest steel producers in the world, Tata Steel can produce 34 million
tonnes of crude steel annually on a global scale (MnTPA). The business has commercial
operations in more than 50 countries and manufacturing facilities in 26 different nations.
With a capacity to produce more than 12.1 million tonnes of crude steel annually, Tata
Steel ranks as the second-largest steel producer in Europe. The company provides a wide
range of steel products, including a portfolio of downstream goods with a high level of
value addition, such as hot-rolled coated steel rebars, cold-rolled wire rods, tubes, and
wires. It is a multifaceted steel manufacturer with significant activities in South East
Asia, Europe, and India. In addition, it is present across the whole value chain of the
manufacture of steel, from the extraction and processing of coal and iron ore to the
production and distribution of finished goods. The business also engages in prospecting,
discovery, and mining for iron ore, coal, ferro alloys, and other minerals, as well as
designing and producing facilities and machinery for the steel, oil, and natural gas
industries, the mining of railways and ports, the aviation and space industries, and the
manufacturing of agricultural implements. Additionally, they produce rolls, bricks,
sponge iron lumps and fines, and alumina dolomite and monolithic refractories as well as
silica refractories for use in integrated steel plants, power plants, government mints,
paper, textile, and food processing industries. These materials are used in coke ovens and
the glass industry. The operations of Tata Steel are divided into six Strategic Business
Units, including the Tubes Division, Wire Division, Bearings Division, Ferro Alloys and
Minerals Division, and Agrico Division. They have launched a number of steel products
under their own brands, such as Tata Steelium, the first branded cold-rolled steel in the
world, and Tata Shaktee (Galvanised Corrugated Sheets) TA TI SCO (rebars) TA PILES
TA BINNINGS Structural Tata Tata Agrico and Tata Wiron (hand tools and implements)
(galvanised wire products). Tata Iron & Steel Company Ltd., the original name under
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which Tata Steel Ltd. was incorporated, was founded in 1907. The first blast furnace,
known as the "A" Blast Furnace, was put into service by the firm in 1911. The first
collieries were acquired and the first cast of pig iron was made on December 2, 1911. The
first steel ingot was produced at the Sakchi Plant in early 1912, and the Bar Mills began
producing steel for sale in October of the same year. During the year, the B Blast Furnace
also started up. The first steel (coke) plant in India was built in Jamshedpur in 1918. The
New Rail Mill Merchant Mill and Sheet Mill began operating in 1925. They started an
apprentice shop in 1931. They began producing special steel for use in battle in 1941.
They manufactured a wide range of unique steels needed for defence uses, including
"Tatanagars," which are armoured vehicles. Howrah Bridge was built in 1943 using steel
that the firm provided. The firm and Kaiser Engineers signed a contract for a two million
tonne expansion programme in 1955. The first stage of the four-phase modernization
initiative was initiated in the year 1980. In 1984, the business launched BOF steelmaking,
which could make liquid steel in 45 minutes as opposed to the roughly 500 minutes it
took the previous open hearth furnaces during the initial phase of modernization. Indian
Tubes Corporation Ltd. merged with the company in the years 1984–1985. The second
stage of modernization began in 1988 and was mostly focused on the iron-making
industry. The company's third modernization initiative included the commissioning of the
Hot Strip Mill, which has an annual capacity of one million tonnes. As a first move
toward growth and modernization, the business opened the 1.2 million tonnes Cold
Rolling Mill Complex in 2000. The Indian Steel Wire Products Company was purchased
in Jamshedpur on January 2, 2004. In order to build a five million tonne per year
Greenfield integrated steel factory in the Chhattisgarh district of Jagdalpur, the business
signed an MoU on June 4, 2005. They established a joint venture with Blue Scope Steel
Ltd. in Australia in July 2005 for a steel manufacturing facility that was quoted. The
business bought shares in Australian coal mines on July 21, 2005. The business
established a Met coke producing factory in West Bengal in August 2005. In order to
build a 12-million-ton-per-year Greenfield integrated steel plant in the Jharkhand regions
of Manoharpur and Chandil, the firm and the Jharkhand government signed a
memorandum of understanding on September 19, 2005. They signed a binding contract
with Cementhai Holding Company on December 14, 2005, to buy shares and put money
into Millennium Steel Thailand. With effect from May 19 2005, the company's name was
also changed from Tata Iron & Steel Company Ltd to Tata Steel Ltd. The company
opened India's first automated hydrocyclone and jigging plant in 2006, with a throughput
of 1.6 MTPA, at Noamundi Iron Mines. By purchasing Rawnet Ferrous Industries Pvt
Ltd in Orissa, a ferro alloys facility with a capacity of 50,000 tpa of high carbon chrome,
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they started work on the ferro chrome plant. They established a Joint Venture Company
with Larsen & Toubro Ltd for the construction of an all-weather, modern deepwater port
in the Indian state of Orissa. It introduced new nickel-plated steel products for use in
electric vehicle rechargeable batteries. In the construction industry, it introduced products
that increased the durability of the Contiflo series of precision tubes and increased the
capability of linepipe options for offshore oil and gas applications in the X65/X70 grade
range. Additionally, it introduced Sinusoidal Roof Panel, the market's long-term
substitute for asbestos. To expand its heat treatable manganese boron portfolio, the
company has introduced two new hot-rolled grades in the engineering sector: 27MnB5
and 38MnB5. It met client demand in the building sector by commercialising the
Colorcoat High Reflect Liner A+ organic coated steel product in the United Kingdom. In
order to establish a new operational paradigm (Polymer utilisation to lower the cost of
coal blend and use of alternative fluxes in blast furnaces for increased productivity), the
company undertook 20 additional trials throughout the plant during FY 2021–2022. Out
of the 29 new goods it had created, three were debuts in India, namely Lead-free alloy
LRPC (PC300k) steel
5. National Steel Policy 2012
For a very long time to come, steel will likely continue to rank among the most
significant engineering materials in the world. The steel sector is a driver of economic
growth and a sign of economic prosperity thanks to its strong backward and forward
links.
Steel is also essential to the nation's economic security because it is widely used in
important fields like military, power, atomic energy, and the development of the nation's
social and economic infrastructure.
The majority of industrialised countries primarily relied on their own steel industry to
meet the demands of faster industrial expansion and for the construction of physical
infrastructure during their economic development. Although steel is a freely traded good,
a growing economy like India's dependency on imported steel may leave the country's
economy exposed to fluctuations in global supply, export restrictions, and worldwide
price volatility. Due to the availability of resources locally and the desire to reduce the
burden on the current account balance, India's case for domestic steel production is even
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stronger. In reality, the demonstrated comparative advantages in labour and raw materials
might turn India become the world's top exporter of steel.
The National Steel Policy 2005 (NSP 2005) was developed at a time when the Indian
steel industry had just shifted to a higher growth path and was showing signs of a
significant revival. It outlined significant milestones / physical targets and an overarching
broad policy framework to achieve the stated end on the assumption that steel
consumption would increase by 6.9% by the year 2019–20, steel production would
increase by 7.3%, and exports would account for 23% of total production.
Since then, though, the Indian economy has undergone a paradigm shift, with real
economic growth and the success of the country's steel industry exceeding expectations.
Steel output increased at an annual rate of 7.8% and consumption increased by 10% per
year between 2005-2006 and 2011-2012, thus beyond the NSP 2005 estimates.
The strategic objective of obtaining a 23% proportion of exports in production remained

unmet, and India started to import steel from 2007–2008 onwards due to the substantially
faster growth in consumption of steel than in production. The slow rate of capacity
expansion in recent years, especially through investments in Greenfield sites, has been a
major source of worry due to supply-side bottlenecks in areas like land acquisition,
granting of environmental and forestry clearances, availability of raw material linkages,
and other infrastructure-related supports needed by the sector. Additionally, the steel
industry's qualitative performance as assessed by techno-economic efficiency and
productivity indicators has fallen far short of expectations. Additionally, it is believed
that the environment and nearby towns have suffered significantly as a result of the
industry's expansion.
Long-term national goals and vision must serve as the guidance for the growth of the
domestic steel sector. Because of the considerable changes in the local and global
economic environments, National Steel Policy must be dynamic and take into account the
industry's changing needs. The ongoing developments on both the supply and demand
sides called for a reorganisation of objectives as well as adjustments to the targets and
relevant laws. It was believed that a robust legislative push is necessary to hasten the
development of green-field steel capacity in particular because the increase of the
domestic steel supply has lagged behind the rise in domestic demand. Additionally, it was
believed that policy-making should place more emphasis on concerns linked to
sustainable growth, particularly those pertaining to long-term raw material availability,
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environmental protection, inclusive growth, steel product quality, and Research &
Development (R&D).
With this goal in mind and in light of the aforementioned considerations, the Indian
government decided to create the National Steel Policy, 2012. (NSP 2012).
Message of the Year
In order to achieve economic, environmental, and social sustainability, the National Steel
Policy 2012 seeks to make India's steel industry a global leader in terms of production,
consumption, quality, and techno-economic efficiency. The goal of NSP 2012 is to
guarantee access to high-quality steel in order to boost domestic economic growth and
give Indians living standards on par with those of the developed world.
The Indian steel sector will therefore need to expand quickly while using resources as
efficiently as possible in the future years. However, because the steel industry is
unregulated, the government can only play a limited role in promoting faster and more
effective expansion of this sector.
The National Steel Policy's goals
1. To encourage both domestic and foreign investment in the Indian steel sector and to
support the quick implementation of investment plans already in place in order to
completely meet domestic demand by 2025–2026 by reaching a crude steel capacity level
of 300 million tonnes.
2. To make sure that the infrastructure and essential inputs are readily available in order
to reach the expected production level of 275 million tonnes by 2025–2026.
3. To put more of an emphasis on research and development (R&D) for creating

indigenous technology, particularly for identifying ways to make the best use of local
resources and allay environmental and climate change worries.
4. To establish domestic manufacturing, engineering, and design capabilities for essential

capital equipment needed for steel production.
5. To promote the production and consumption of value-added steel by putting the

necessary emphasis on product development and availability, particularly for (a)
addressing the unique needs of rural India, (b) addressing the unique needs of the auto,
power, construction, and shipping sectors, and (c) producing lighter but stronger steels
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that help achieve higher energy efficiency in end applications and also help to alleviate
concerns about the environment and climate change.
6. To promote competition in the market, prevent cartelization, and promote the

manufacture of high-quality steel in order to maximise consumer welfare, safeguard the
interests of the general public, and defend producers against deceptive tactics used by
both domestic and foreign rivals.
7. To achieve efficiency levels on par with the finest in the world, particularly in areas
like energy use and material efficiency. Steel quality, water use, productivity of key iron-
and steel-making machinery, pollution levels, and CO2 emissions. By 2025–2026, the
NSP 2012 projects attaining the strategic goals.
6. The national Steel Policy 2017
The government's long-term goal of boosting the steel industry is enshrined in the new
Steel Policy. It aims to increase domestic steel demand, guarantee high-quality steel
production, and establish a steel sector that is technologically advanced and
internationally competitive. Important elements of the NSP 2017: 1. Promote self-
sufficiency in the production of steel by giving private manufacturers, MSME steel
producers, and CPSEs policy assistance and guidance 2. promote adequate capacity
expansions, 3. create steel manufacturing capabilities that are competitive worldwide, and
4. promote cost-effective production 5. Natural gas, coking coal, and iron ore are readily
available domestically. 6. Encouraging international investment 7. Purchasing raw
material assets & 8. Increasing the need for indigenous steel. By 2030–31, the
programme anticipates a healthy per capita consumption of finished steel of 158 kg, up
from the current consumption of 61 kg, a crude steel capacity of 300 million tonnes
(MT), output of 255 MT, etc. The policy also aims to increase domestic availability of
washed coking coal in order to decrease domestic dependence on imports of coking coal
from approximately 85% to approximately 65% by 2030–2031. This will enable domestic
production to satisfy the entire domestic demand for high grade automotive steel,
electrical steel, special steels, and alloys for strategic applications. Some New Steel
Policy highlights The Indian steel industry has expanded quickly in recent years, and as
of now, it is the third largest producer of steel worldwide, accounting for around 2% of
the nation's GDP. India has also produced more than 100 MT for sale in 2016–17. By
2030, the New Steel Policy hopes to have 300 MT of steelmaking capacity. The Policy
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attempts to enhance consumption of steel and the primary segments include

infrastructure, vehicles, and housing. This would translate into extra investment of Rs. 10
lakh crore by 2030-31. By 2030, the New Steel Policy wants to boost per capita steel
consumption from its current level of about 60 kg to 160 kg. The steel sector's MSME
potential has been acknowledged. The MSME steel sector will be encouraged to adopt
energy-efficient technology, according to policy, in order to increase overall productivity
and lower energy intensity. Through the establishment of the Indian Steel Research and
Technology Mission, the Steel Ministry would support R&D in the industry (SRTMI).
Utilizing a triangular synergy between industry, national R&D facilities, and academic
institutions, the programme aims to lead R&D of national importance in the iron and steel
sector. The ministry would ensure that raw materials including iron ore, coking coal and
non-coking coal, natural gas, etc. are available at reasonable prices. The National Steel
Policy-2017 is expected to direct the sector toward fostering local steel production and
assuring a scenario where output keeps pace with the anticipated rate of consumption
growth through a technologically advanced and globally competitive steel industry. The
Ministry of Steel will assist with this, working in conjunction with any necessary
Ministries. Background: One of the most essential commodities in the modern era, steel
is the foundation of any industrial economy. Steel has a wide range of uses, from
construction to infrastructure to electricity to aerospace and industrial machines to
consumer goods, making India one of the countries in the world with the fastest
economic growth. Over the past few years, the Indian steel industry has risen rapidly to
become the third-largest producer of steel in the world, contributing to around 2% of the
nation's GDP and employing roughly 5 lakh people directly and another 20 lakh
indirectly. Untapped potential combined with solid governmental backing creates the best
environment for growth. The revised NSP, 2017, became necessary due to the sector's
strategic relevance as well as the requirement for a strong and restructured strategy in the
current environment. Although the National Steel Policy 2005 (NSP 2005) sought to
outline strategies for preserving the benefits arising from the then-prevailing economic
order and mapped out a course for the sustained and effective expansion of the Indian
steel industry, it needed to be modified in light of recent developments taking place in
India and around the world, both on the supply and demand sides of the steel market.
**** Cabinet endorses a policy giving indigenous iron and steel manufacturers
preference in government purchases. The policy to give precedence to domestically
produced iron and steel goods on government procurement has been adopted by the
Union Cabinet, which is presided over by Prime Minister Shri Narendra Modi. The goal
of this programme is to support domestic manufacturing and realise the Prime Minister's
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vision of "Make in India," which aims to strengthen the country. Domestically

manufactured iron and steel products (DM1&SP) must be given preference in
government procurement, according to the policy. The DMI&SP policy stipulates a
minimum value addition of 15% in designated steel goods that are covered by
preferential procurement, and it is applicable to all government bids where the price bid
has not yet been disclosed. Ministry of Steel reserves the right to revise the minimum
value addition criterion and the specified steel products in order to give flexibility. When
implementing the policy, it is up to each domestic producer to certify on their own behalf
to the procurement government agency that the iron and steel products are made in
accordance with the required domestic value addition. Verifying the accuracy of the
claim is typically not the procuring agency's obligation. In a few situations, the bidder
will be required to provide evidence that their offer is accurate when asked to do so. If a
manufacturer feels they have been wronged, they can file a complaint with the Ministry
of Steel's grievance committee, which will resolve it within four weeks. If specified steel
grades are not produced domestically or the quantities required for the project cannot be
met through domestic sources, there are provisions in the policy for waivers to all such
procurements. The goal of the policy is to encourage the expansion of the indigenous
steel industry and lessen the tendency for government-funded projects to employ low-
cost, imported steel. Every government agency shall be in charge of overseeing the
policy's implementation.
Advantages, threats, opportunities, and weaknesses of the Indian iron and steel
industry
Strengths
1. Iron ore is readily available in the short and medium terms.
2. India has low wages as compared to other countries.
3. The potential future availability of labour with the necessary managerial and technical
capabilities.
4. New facilities, technology, and production effectiveness are reaching global standards.
80
27
Chapter 3
5. Greater efficiency benefits are anticipated from the current integrated steel mills,
which are modernising and increasing their capacity.
6. Stable governmental structures and legal frameworks that encourage industry

competitiveness and advance consumer interests.
7. A strong domestic economy with the potential for long-term growth in the demand for
domestic steel.
Weaknesses
1. The future availability of iron ore is uncertain due to environmental, legal, and social
issues, as well as potential exhaustion threats from excessive exports.
2. A sizeable sector of the steel industry still uses antiquated methods to make subpar
steel, which results in high levels of pollution and CO2 emissions and has socioeconomic
costs associated with its continued operation or closure. With transportation costs among
the highest in the world, the local market may lose important competitiveness.
3. There is not enough land available in the right location and size.
4. Very little project execution has been done as a result of various issues, such as hand
acquisition delays.
5. Insufficient attempts to build the steel industry's R&D foundation.
6. Because domestic coking coal is of poor quality, there is a high dependence on

imported coal. High capital costs are caused by a lack of domestic design and
manufacturing capacity for iron and steel equipment.
7. Sluggish acquisition and development of mining assets abroad.
8. There is a lot of litigation, particularly concerning the granting of mining rights and
environmental approvals.
Opportunities
1. A rapidly growing economy with a low base of steel consumption, a sizable and young
population with the potential to increase the base of steel consumption, a backlog of
infrastructure investment that can be cleared by savvy government spending, and the
28
Chapter 3
potential expansion of the industrial base to increase the base of steel consumption in the
nation.
2. Due to rising rural incomes, government development plans with a focus on housing,
and the building of rural infrastructure like bridges etc. to support a stronger rural steel
consumer base, opportunities in rural markets are projected to dramatically increase.
3. There is a large potential for cost savings through increased productivity.
4. With the passage of related legislation, more clarity on crucial policy concerns, such as
land acquisition and the grant of mineral assets, is likely to emerge.
Threats
1. Concern that new steel mills will become less competitive as a result of expensive
land, labour , and capital costs as well as higher allowances for environmental protection,
CSR, and increases in the cost of using infrastructure like power, trains, roads, and ports
2. The financial crisis in the Eurozone and the slowdown in other developed nations may
last longer than anticipated. China's economic slowdown could result in an oversupply,
steel dumping, and a decline in steel prices.
3. Social unrest and environmental issues related to the water supply for business are
expected to become a greater hazard in the future.
4. A rising trend in wage rates coupled with a lacklustre increase in labour productivity is
eroding the Indian industry's labour cost advantage.
5. A general decline in efficiency in the Indian manufacturing sector could have an

impact on the expansion of the steel demand at one level and lead to increased capital
equipment prices for the sector at another.
7. Production of Finished Steel in India
29
Chapter 3
Figure 5: Production of Steel
Steel Export in MT
30
Chapter 3
Figure 6 : Export of Steel
Export import comparatively
Figure 7 : Steel Export and Import comparative in india
31
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Chapter 3

Chapter 3 : Working Capital Management of Rashtriya Ispat Nigam Limited and

2. Profile of Indian Iron & Steel Industries

According to the Society of Indian Automobile Manufacturers, domestic passenger

3. History of Indian Iron & Steel Industry

resources. In order to serve as a holding corporation, similar to more established but

4. Profile of Selected Major Companies in Steel Industry

4.1. Rashtriya Ispat Nigam Limited ( RINL )

Below are some data of the RINL

Trend of Gross Income

Figure 1 : Trend of Gross Income

Trend of Net Worth

Figure 2 : Trend of Net Worth

Figure 3 : Breakup of Income

Distribution of Gross Income

Figure 4 : Distribution of Gross Income

4.2. Bhushan Steel Limited ( BSL )

The managing director of Tata Steel BSL Limited is Rajeev Singhal.

4.3. Jindal Steel Works (JSW)

4.4. Jindal Steel and Power Ltd. (JSPL)

business prospects by boosting production capacity, diversifying its investments, and

Mauritius (JSPLM) in June 2010. Three months ahead of schedule, commercial

4.5. Steel Authority of India Ltd. (SAIL)

SAIL frequently collaborates with the Indian government on important flagship

In all of its industrial endeavours, SAIL prioritises the environment alongside

4.6. TATA Steel Limited

5. National Steel Policy 2012

The strategic objective of obtaining a 23% proportion of exports in production remained

Message of the Year

The National Steel Policy's goals

3. To put more of an emphasis on research and development (R&D) for creating

4. To establish domestic manufacturing, engineering, and design capabilities for essential

5. To promote the production and consumption of value-added steel by putting the

6. To promote competition in the market, prevent cartelization, and promote the

6. The national Steel Policy 2017

attempts to enhance consumption of steel and the primary segments include

vision of "Make in India," which aims to strengthen the country. Domestically

1. Iron ore is readily available in the short and medium terms.

2. India has low wages as compared to other countries.

6. Stable governmental structures and legal frameworks that encourage industry

5. Insufficient attempts to build the steel industry's R&D foundation.

6. Because domestic coking coal is of poor quality, there is a high dependence on

7. Sluggish acquisition and development of mining assets abroad.

3. There is a large potential for cost savings through increased productivity.

5. A general decline in efficiency in the Indian manufacturing sector could have an

7. Production of Finished Steel in India

Figure 5: Production of Steel

Figure 6 : Export of Steel

Export import comparatively

Figure 7 : Steel Export and Import comparative in india

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