The ArcelorMittal Nippon Steel (AM-NS) joint venture has announced plans to invest Rs 2.6 lakh crore(approximately $30 billion) in India over the next ten years, The Times of India reported on April 17. This investment aims to increase the company's steel production capacity by more than four times, targeting around 40 million tonnes per annum (MTPA).
The new plan by the joint venture is based on a bullish outlook for both the infrastructure and automobile industries in India, ToI's report (by Pankaj Doval) said quoting a senior official of the company..
The company noted that India's per capita steel consumption, which stands at about 94 kg, is substantially lower than that of other countries. For comparison, the figures for steel consumption in China range from 660 to 670 kg, in the US it is between 600 to 700 kg, while Japan consumes 800 to 900 kg, and South Korea leads with 1,100 kg.
Ranjan Dhar, director and VP of sales and marketing, told the newspaper that there is significant potential for growth in this sector.
It may be mentioned here that AM-NS operates as a 60:40 joint venture and commenced its operations in India in 2019 after purchasing Essar Steel India through the Insolvency and Bankruptcy Code (IBC) process in a deal valued at Rs 42,000 crore.
According to Dhar, despite facing some short-term challenges arising from tariff policies of the Donald Trump administration, the overall economic outlook remains optimistic.
Currently, the company possesses a steel production capacity of 9.6 MTPA, which is set to increase to 15.6 MTPA by the end of the current fiscal year, with an investment of Rs 60,000 crore.
"The government is encouraging significant investments in line with the 'Viksit Bharat' initiative aimed at 2047, which will necessitate an increase in steel production," he observed.
When questioned about the effects of US tariffs and the subsequent changes in policy, Dhar stated that the company would await further clarity before forming a definitive perspective. "We need to evaluate the situation, but we have complete confidence in the Indian government, which is currently in discussions with the US administration... This is a global reset, and we will observe how it influences India," he added.
Regarding the issue of steel dumping in India, where the Directorate General of Trade Remedies (DGTR) has suggested implementing a 15% safeguard duty on certain imports, Dhar said that the government is actively addressing the situation.
The new plan by the joint venture is based on a bullish outlook for both the infrastructure and automobile industries in India, ToI's report (by Pankaj Doval) said quoting a senior official of the company..
The company noted that India's per capita steel consumption, which stands at about 94 kg, is substantially lower than that of other countries. For comparison, the figures for steel consumption in China range from 660 to 670 kg, in the US it is between 600 to 700 kg, while Japan consumes 800 to 900 kg, and South Korea leads with 1,100 kg.
Ranjan Dhar, director and VP of sales and marketing, told the newspaper that there is significant potential for growth in this sector.
It may be mentioned here that AM-NS operates as a 60:40 joint venture and commenced its operations in India in 2019 after purchasing Essar Steel India through the Insolvency and Bankruptcy Code (IBC) process in a deal valued at Rs 42,000 crore.
According to Dhar, despite facing some short-term challenges arising from tariff policies of the Donald Trump administration, the overall economic outlook remains optimistic.
Currently, the company possesses a steel production capacity of 9.6 MTPA, which is set to increase to 15.6 MTPA by the end of the current fiscal year, with an investment of Rs 60,000 crore.
"The government is encouraging significant investments in line with the 'Viksit Bharat' initiative aimed at 2047, which will necessitate an increase in steel production," he observed.
When questioned about the effects of US tariffs and the subsequent changes in policy, Dhar stated that the company would await further clarity before forming a definitive perspective. "We need to evaluate the situation, but we have complete confidence in the Indian government, which is currently in discussions with the US administration... This is a global reset, and we will observe how it influences India," he added.
Regarding the issue of steel dumping in India, where the Directorate General of Trade Remedies (DGTR) has suggested implementing a 15% safeguard duty on certain imports, Dhar said that the government is actively addressing the situation.
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