Overseas Investment in Steel Sector

The Minister of Steel, Shri Beni Prasad Verma has said that there is a net increase in foreign direct investment inflows into the country in the metallurgical sector, including steel sector, during the last three financial years. The details are given below:

Year	Amount of FDI inflows *
	In Rs. Crores	In US$ Million
2009 – 10	1,999.30	419.88
2010 – 11	5,023.34	1098.14
2011 – 12	8,242.42	1,765.07

(*Source: Department of Industrial Policy & Promotion, Ministry of Commerce)

Following are the major investments proposed by foreign steel producers in the Indian steel industry in the last three years:

Proposals to set up steel plants in India*
Producer	Proposed State	Proposed Annual Capacity	Proposed Investment (Rs. Cr.)
Posco	Orissa	12 mtpa	52,000
Posco	Karnataka	6 mtpa	32,000
Arcelor-Mittal	Orissa	12 mtpa	40,000
Arcelor-Mittal	Jharkhand	12 mtpa	50,000
Arcelor-Mittal	Karnataka	6 mtpa	30,000
NMDC-Severstal	Karnataka	3 mtpa	Both will jointly invest Rs. 9,000 crore
Tata Steel-Nippon Steel	Jharkhand	60,000 tonnes	2300

(*Source: Joint Plant Committee)

·         In a written reply in the Lok Sabha today Shri Verma said, in addition to these, the following are some of the major investments made by foreign investors in the Indian steel industry:

·         Acquisition of 14.99 per cent stake in JSW Steel Ltd. by JFE Holdings of Japan.

·         Acquisition of 29 per cent stake in Uttam Galva Steels Ltd. by Arcelor-Mittal.

The Minister said, in order to monitor and coordinate various issues concerning major steel investments in the country, an Inter-Ministerial Group (IMG) has been constituted. Inter Ministerial Group (IMG) on steel sector is a forum to coordinate, monitor and review issues affecting major steel sector investments. The individual issues raised during the IMG meetings are further dealt by the concerned Ministries/Departments and State Governments in accordance with the provision of the extant rules and policies.