15. Mini-Steel Plants

In addition to these, there are more than 225 mini-steel plants with a capacity of 10,000 tonnes to 5 lakh tonnes. The main factors responsible for the growth and establishment of mini-steel plants are:

(i) Heavy demand for iron and steel

(ii) Lower cost of production

(iii) Controlled price of the steel

(iv) Easy availability of scrap at lower prices from home and abroad

(v) Lower capital investment

(vi) Shorter gestation period

The production of steel in India between 1980 and 2006 has been shown in Fig. 11.10 while Table 11.5 gives the production of pig-iron and steel. It may be observed from Table 11.5 that the production of finished was only about one million tonnes in 1950-51 which rose to 32.50 million tonnes in 2005—06

Fig. 11.10 India—Production of Steel

Table: 11.5 Trends in the Production of Iron and Steel in India (in million tonnes)

Source: Indian Economic Survey, 2005 06 and India 2007.