“There is lot going for Green furnace in terms of performance and new features.”

With a mission to achieve 300 million tons of steel capacity by 2030, secondary steel sector will also play a major part in achieving the target. Estimates of contribution of the secondary sector vary widely from 30 percent to 50 percent. Steel production via induction furnace is the least capex intensive, less gestation period and has significant operational advantages. Megatherm is among the top three manufacturers globally and is dedicated to bringing about an energy saving revolution in the sector. Satadri Chanda, executive director of Megatherm Group tells Tamajit Pain, the key opportunities and challenges before the sector.

- Tamajit Pain

How do you see the steel industry performing in FY21?

Steel industry will be under pressure in FY21 due to subdued demand and bearish sentiments. However, the fact that Chinese imports have reduced will help companies stay afloat.

What are the challenges being faced by producers making steel through the induction furnace route in the current pandemic situation and intermittent lockdown in some parts of the country?

Frequent lockdown delays projects and construction work. New projects being planned will also be shelved till all lockdowns end. This will negatively impact the demand side for steel industry.

Frequent lockdowns have also created a labour crisis. Although most companies have gradually been able to employ adequate manpower, it has become difficult to replace or add new labour for any expansion project

Raw material availability has also become a major concern. While raw material prices have increased, the muted demand has put margins under a lot of pressure.

How do see the economy performing in next two quarters? What are the government policies or incentives required to spur growth and solve challenges faced by steel makers following the induction furnace route for production?

Like always, Government investment plays a key role behind steel demand in our country. The next two quarters will depend on new projects being launched by the central and state governments as well as market sentiments. Any positive news regarding Covid-19 vaccine will improve sentiments leading to increase in private consumption.

What are the short-term growth prospects of induction steelmaking in the country?

Over the years, induction furnace route for steelmaking has gained prominence in India.