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[Ferro-Alloys.com] India: the draft Logistics plan for Iron and Steel sector by 10th of October 2023

Preface

The Iron & Steel Sector's Sectoral Plans for Efficient Logistics (SPEL) is a forward-thinking strategy to enhance logistics capabilities in the industry. It focuses on interoperability, resilience, and sustainability, ensuring seamless integration of logistics components, preparing the sector for disruptions, and adopting eco-friendly practices

The strategy includes infrastructure improvements, process streamlining, and digital

interventions. It also considers policy and regulatory reforms to eliminate or minimize bottlenecks and boost growth.

Collaboration between related sectors, such as railways and roads, is essential to prevent redundancy and maximize efficiency.

The Ministry of Steel is actively involved in implementing this strategy, developing a modal mix strategy using Total Transport Studies and a digital monitoring system. The Ministry has identified over 2100 steel units and 22 high-impact projects, aiming to bridge infrastructure gaps through a well-connected multimodal network. This initiative aligns with the PM Gati Shakti initiative and aims to make a significant contribution to India's economic progress.

1. Overview About Steel Sector

India is the Second largest producer of steel in the world, manufacturing ~127 MMT in FY23 and having a total capacity of 161 MMT.

Over the last five years, the Crude Steel production in India expanded from 110.92 million Tonne (MT) in 2019 to 127.2 MT in 2023. Crude Steel production in 2023 showed a year-on-year growth of 5.7% over 2022. The Capacity for domestic crude steel expanded from 142.299 million Tonne Per Annum (MTPA) in 2019 to 161.3 MTPA in 2023.

During FY (2022-23), the following was the Steel industry scenario:

Crude Steel production of 127.2 MT, SAIL, RINL, TSL Group, AM/NS, JSWL and JSPL together

produced 80.053 MT with a share of 62.94% in total production. The rest amounting to 47.143 MT came from the Other Producers.

Production of Total Finished Steel stood at 123.196 MT showing a growth of 8.45 % over the year.

Export of Total Finished Steel stood at 6.716 MT showing an annual decline of 100% over the year.

Import of Total Finished Steel was at 6.022 MT, up by 1.29% over the year.

Consumption of Total Finished Steel was 119.893 MT showing a growth of 13.4 % over the year.

• [Editor:tianyawei]