India has the potential and capacity to become a global metal hub not only to serve the industry domestically but also make a significant pitch in the international arena, according to an expert.
Several firms, including Mittal Steel, have announced plans to set up new steel plants in the country but most are yet to firm up the projects.
"We believe that India can become a global metal hub, meeting all domestic requirements. Countries such as China and Vietnam can also be best served by India," said V Krishnamurthy, Chairman of the Prime Minister's National Manufacturing Competitiveness Council.
Krishnamurthy stressed that besides being endowed with natural resources such as iron ore, coal and other minerals, India also has the necessary engineering and metallurgical talent for manufacturing value added products and the capacity to design steel plants and equipment that goes into the plants.
"The government needs to recognise that the metal industry can be a big engine for growth. We wish to create a vibrant 400 million tonne industry," he told a committee meeting organised by the Confederation of Indian Industry (CII).
Highlighting a need for government intervention, Tata Steel managing director B Muthuraman said specific tracts of land near the coast or near the source of the raw material should be earmarked for projects, particularly steel units, as they require a large area.
"Many states don't have rehabilitation policies - a hindrance while acquiring land for the project. The Indian steel industry will become uncompetitive unless captive raw material is provided. Our natural resources must be used for the development of our country first," Muthuraman said.
Other factors for building an enabling environment include better connectivity to the mines and steel plants as also plentiful water as steel production is a water guzzler, he said.
"These are the major and fundamental problems. None of the (new steel plant projects) capacities announced will take off due to the lack of availability of land," Muthuraman cautioned.
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