Sunvik Steels Pvt Ltd

Pre-feasibility Report

Finished steel is produced in the form of flat and non-flat products and is normally
available from integrated steel plants or secondary producers covering mini steel
plants and re-rollers. Bars and rounds along with structural heavy rounds belong to
the category of long products of steel and generally produced from billet/ingot in rod
mill/structural mill. These products play very significant role in the development of
both the industrial and constructional sector of the country.
The Indian steel industry entered into a new development stage from 200506,
resulting in India becoming the 5th largest producer of steel globally. Producing about
53 million tonnes (MT) of steel a year, today India accounts for a little over 7 per cent
of the world's total production.
India is the only country world over to post a positive overall growth in crude steel
production at 1.01 per cent for the January-March period of 2009. The recovery in
steel production has been aided by the improved sales performance of steel
companies.
According to a report from Barclays Capital, China and India are going to provide the
impetus for steel demand for the next few years.
Production
Steel production grew at 1.2 per cent in the January-March quarter of 2008-09 over
the same period last year. The fourth quarter saw most of the large steel companies
such as SAIL, Tata Steel, Essar and JSW operating at full capacity.
The National Steel Policy has a target for taking steel production up to 110 MT by
201920. Nonetheless, with the current rate of ongoing Greenfield and Brownfield
projects, the Ministry of Steel has projected India's steel capacity is expected to touch
124.06 MT by 201112. In fact, based on the status of Memoranda of Understanding
(MOUs) signed by the private producers with the various state governments, India's
steel capacity is likely to be 293 MT by 2020. Steel Minister, Ram Vilas Paswan, has

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