Steel Must Enter High-End Segments As Import Substitution

India has been lagging behind advanced countries, including China, in developing appropriate technologies for steel-making and raw materials processing due to very low expenditure on R&D activities.

Less than 0.5 percent of the total turnover is invested in such areas as against 1-2 percent by advanced mills. It is also observed, there is not adequate impetus for private entrepreneurs to go in for foreign technology transfer or for establishing manufacturing hubs within the country with the help of technology owners for whom the necessary drawings and designs are in excess supply due to shrinking growth of the steel industry in many advanced countries. It is, therefore, imperative that the major steel plants in India invest adequately in developing technologies for steel- and iron-making, Sushim Banerjee, Director General of the Institute for Steel Development & Growth (INSDAG), tells Tamajit Pain

What is the present R&D scenario like in Indian steel-making? Which areas are being focused on?

The genesis of the Indian steel industry after the Second World War revolved around public sector steel plants like Bhilai, Rourkela, Durgapur and Bokaro, At the time of Independence, two integrated steel producing units were operating, one at Jamshedpur and the other at Burnpur. The public sector steel plants at Bhilai and Bokaro adopted the Russian technology of steel-making while the Austrian LD technology and British technology were adopted at Rourkela and Durgapur. The major private sector steel plants like Essar Steel, JSW Steel and JSPL borrowed foreign technology (Japanese and German) for steelmaking. The Research and Development Centre at Steel Authority of India Limited (SAIL) and Tata Steel have been doing intensive research not on basic technology of steel making but have concentrated on improvements in rolling technology and other quality upgradation areas.