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home >> about west bengal >> sectoral focus >> thrust areas >> iron & steel

Iron & Steel

Profile & Performance

The establishment of Bengal Iron Works at Kulti in Burdwan district of West Bengal in 1870 where the first commercial blast furnace was set up in 1875 heralded the commencement of this industry in the State. The neighbouring Eastern States of India viz. Jharkhand, Orissa and Chattisgarh are endowed with huge iron ore reserves along with cooking coal and non-cooking coal. The growth of steel industry in the State is largely related to the proximity of raw materials, skilled manpower, port facilities and the vast market for steel products. Given these location

advantages, large numbers of mini integrated steel plants have already been set up in the state manufacturing a wide range of products such as sponge irons, mild steels, iron pipes etc.

In the period 1991-2004, 243 new Iron and Steel units were set up in the state with a total investment of US$ 1856.8 million. In the last three years (2002-2004), 108 iron and steel projects with a total investement of US$ 414.3 million were implemented in the state. The easy availability of power, competitive rates of freight, close proximity to areas with natural resources relevant to the industry, and labour force traditionality skilled in operating iron and steel units are factors thathave influenced the surge in investment in this sector.

Some of the significant players in this sector are:

	Steel Authority of India (SAIL) has the two major units, Durgapore Steel Plant (DSP) and Alloy Steel Plant. The capacity of DSP is 2.088 million tonnes of hot metal, 1.8 million tones crude steel and 1.586 million tonnes selable steel. ASP’s sealable steel production in the year 2004-2005 grew by 13% to end at 0.15 million tonnes, liquid steel grew by 6% to end at 0.15 million tonnes and crude steel grew by 6% to finish at 0.14 million tonnes.
	Bhusan Ltd. Which is growing at 35% per annum with an investment of some US$ 64 million and has plans to set up more units in the near future.
	Electrosteel Casting Ltd is recognized as the largest producer of spun iron pipes in the sub-continent and the 5th largest in the world.
	Gontermann Peipers (I) Ltd is the 2nd largest producer of Iron and Steel based rolls in India and largest exporter of rolls from the country.
	Vesuvius India Ltd has a 3000 tonnes unit in the state and manufactures specialized refractory for steel industry.

Policies & Plans

The State Government is taking a number of policies to improve & develop the iron & steel industries in the state. The focus of the policy would be to achieve global competitiveness not only in terms of cost, quality & product mix but also in terms of efficiency & productivity.

The major thrust areas of the policy are:

	Implement road maps for technological & productivity improvements benchmarking them to global policy.
	Encourage strategic alliances with buyback arrangements & dedicated export production through 100% export-oriented units.
	Encourage the use of steel in constructing bridges, crash barriers, flyovers, buildings etc.
	Enhance basic & applied Research & Development.
	Support basic & applied research in utilizing indigenous raw materials through partnerships between steel & refractory producers.
	Steel producers would be encouraged to develop port & berth facilities.
	Set up Foundry and Iron & Steel Parks in the state.
	Efforts will be made to avail export credit, provide trade information & cut transaction cost in general.
	Focus on regional trade agreement to broaden the export base.
	West Bengal Government will encourage the use & development of indigenous iron & steel industries by giving preference in procurement.

Products & Services

	Sponge iron and mild steel plants
	Iron pipes
	Cold rolled closed annealed coil sheets
	Precision tubes
	Galvanized sheets
	Kitchen appliances
	High speed steel rolls
	Forged rolls
	Metal containers and caps
	MS plated for ships
	Cast Iron
	Pump Shafts
	Couplings
	Plates
	Street Furniture
	SS Bars
	TMT Bars
	Rails
	Fly Wheels
	P&O Sheets