New Steel Policy Expected After Six Months .

The Indian government is expected to come up with a new National Steel Policy after six months to meet the growing demand of steel, a government official said Wednesday.

"We constituted an expert committee of five people to draw a new policy which will be more effective. It is in the draft stage. The new policy will take six months to come," P.K. Misra, Secretary in the steel ministry, told an event organised by the Merchants Chamber of Commerce.

"About 10-15 million tonnes of steel capacity will be added in the current year and 30 million tonnes of steel capacity is expected to be added in the next two years," he said.

He said even as India was currently the fourth largest steel producer in the world, demand for steel in the country outstripped supply.

Stating that demand for steel was growing at a rate of 11 percent per annum, Misra said a new policy was required to meet the growing demand.

According to World Steel Association, demand for steel in India will grow at the rate of 14 percent in 2014.

"If this trend continues, then demand for steel would be at about 193 and 263 million tonnes in 2020 and 2025 respectively," he said.

Misra said due to the 20 percent export duty imposed on iron ore, export was already declining.

Source : expressbuzz.com