India to witness phenomenal growth in Pellet production over the next few years
Iron ore Pelletisation is set to achieve multi-fold growth as India seeks to achieve ambitious target of 126 MnT of Steel productions by 2016-2017. This is to cater to the increasing demand for Steel in the developing domestic market. Over the next few years i.e. by 2016-17, India’s Pellet production capacity is estimated to reach over 100 MnT pa which is nearly double the country’s current (2012-13) production capacity of 49 MnT pa.
India, like Germany & China will continue to use Lumps, Sinter & Pellets as the BF burden. With decreasing availability of high grade Iron ore lumps, Pellet concentration in the burden could go up to 25-30 per cent in the next 5 years from the current levels of 10-15 per cent.
Presently, Odisha (Eastern India) is the most preferred destination for setting up a Pellet plant owing to both, good availability of high grade Iron ore fines & its strategic location (possibility of Pellet exports). Chhattisgarh is also a strong contender location-wise (NMDC produced about 22 MnT of Iron ore in 2012-13), which accounts for India’s highest steel production from secondary manufacturer’s.
Considering Pellet production scenario in Chhattisgarh, Its current capacity is of 3 MnT pa, likely to touch 10 MnT pa in 2013-2014. Godawari Power & Ispat Limited will be the largest manufacturer by 2016-17 (1.8 MnT pa). State has the advantage of supply of Iron ore fines from NMDC, Chaattisgarh. Karnatka has capacity of 17 MnT pa. No expansion is coming up in the state owing to insecurity of supply of Iron ore, after Supreme Court banned mining. JSW is the largest Pellet manufacturer with a capacity of 9.2 MnT pa.