India will review next Monday the progress of planned steel projects, including investment proposals worth billions of dollars by South Korea's POSCO and global leader Arcelor Mittal, a minister said on Monday.
Steel Secretary R.S. Pandey said on the sidelines of an iron ore conference in New Delhi that a panel of ministers would meet officials from mineral-rich states like Orissa and Jharkhand, where firms are looking to set up new units. "We will meet all the major states where investments are likely," Pandey said.
POSCO hopes to begin in October preliminary work on a $12 billion steel plant in Orissa, which has been dogged by delays and protests by local residents over compulsory land purchases.
The firm hopes to begin construction early next year. Arcelor Mittal is planning large plants in both Orissa and neighbouring Jharkhand. India aims to raise annual steel production to 150-180 million tonnes by 2020, from about 46 million tonnes in the fiscal year that ended in March.
India has iron ore reserves of 23 billion tonnes, and rapid economic growth and the subsequent need for big infrastructure improvements have attracted steel companies. But they have faced bureaucratic hurdles in tying down mining leases and opposition over land acquisition from farmers. Pandey urged domestic steel producers to improve their utilisation of low-grade iron ore, which is largely exported due to a lack of suitable technology.
"Whatever you consider as rejects, don't throw them. Try to make use of them," he said, adding that India would need to use resources carefully with steel output expected to jump. India's steel production has been growing at about 10 percent annually, Pandey said. Local companies like the Tata group, Jindal Stainless and Bhushan Steel have also lined up expansion plans.