According to the ‘Steel Outlook 2030-2047’ report prepared by Deloitte, raw material availability will be a major challenge for the steel industry. The report was released on the second day of the ‘India Steel 2023’ conference organized by FICCI.
“In 2030, captive leases will expire, and we will have to focus on accelerating new iron ore blocks and auctions,” Deloitte said in the report. It suggested more steel scrap recycling centers and policies to support exports.
According to the report, the steel industry will get a boost from government spending on infrastructure – about 62% of steel goes into infrastructure creation – as it has announced infrastructure spending of around Rs 10 lakh crore in the current budget, which is almost Rs. 3.3%. of GDP.
PLI schemes are impacting various sectors and the steel industry is also losing ground.
The sector contributes about 2% to the Indian GDP and provides employment to over 2 million people.
According to the report, the National Steel Policy has a vision of 300 million tonnes of crude steel capacity by 2030 and the impact on the industry will come from a strong push towards decarbonisation, circularity, energy transition and sustainability in terms of carbon capture.
In addition, the carbon limit adjustment mechanism in the EU would have a carbon tax on imports from any country that exceed carbon dioxide per tonne of crude steel.
Today, in India it is about 2.5 tonnes of carbon dioxide per tonne of crude steel, while it is about 1.8 in the EU and less in the US.
“Clearly, there is going to be a challenge as green steel is being discussed,” according to the report.
In 2047, the crude steel capacity will increase to 500 million tonnes, according to reports, and per capita consumption will be around 220-225 kg.