New Integrated Steel Hubs to Boost Indian Steel Sector Growth

SEATTLE (Scrap Monster): The Indian Steel Ministry proposed setting up of integrated steel hubs in the country, aimed at supporting the growth of the country’s steel sector. The draft of the policy, which is being uploaded on the Steel Ministry website, is currently open for comments. Recently, the Ministry had also announced a draft policy on steel scrap.

The draft policy recommends setting up of two types of steel clusters. The first type, called ancillary and downstream cluster, will be set up around the Integrated Steel Plants (ISPs). In addition to the anchor plant, it will also have ancillary units and downstream units, thereby creating an integrated ecosystem for the industry. The second category of clusters, known as value-added steel clusters, will be set up near demand centres. These clusters will ensure effective raw material linkages and reduced cost of power for units working in them.

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The Ministry intends to create a task force and a working group for setting up the clusters. A Special Purpose Vehicle (SPV) will implement the project, based on the metrics outlined by the working group. The Ministry will monitor the SPV, even after setting up of the cluster. The Board of SPV will have a Ministry representative, the policy said.

A cluster will comprise of related units across the steel value chain, supported by basic infrastructure and logistics facilities and value-added services. It will consist of units from secondary steel sector and ancillary industry.