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SAGARMALA

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200<br />

Coastal steel capacity in India<br />

Plant sizes<br />

< 1 MTPA 2–5 MTPA<br />

1–2 MTPA >5 MTPA<br />

Coastal capacity<br />

Hazira<br />

Dolvi<br />

Visakhapatnam<br />

Other maritime<br />

nations have >20%<br />

steel capacity at<br />

coastal locations<br />

▪ China (25%)<br />

▪ South Korea (75%)<br />

SOURCE: Ministry of steel; VDEH plant facts<br />

Coastal steel plants provide logistics cost saving of ~INR 1,000 per tonne<br />

Steel logistics cost for serving demand in Chennai<br />

INR per tonne<br />

5,250 2<br />

Coking coal<br />

(Exporting port<br />

to plant)<br />

Iron ore<br />

(Mine to plant)<br />

Steel (Plant to<br />

demand centre)<br />

Other costs 1<br />

1,920<br />

4,240<br />

890<br />

4,090<br />

870<br />

120<br />

820<br />

450<br />

510<br />

750<br />

2,390 2,390<br />

2,390<br />

80<br />

-1,160<br />

Hinterland capacity<br />

Coastal capacity<br />

(close to raw material<br />

at Paradip/Vizag)<br />

Coastal capacity (close<br />

to demand centre at<br />

Ennore/Chennai)<br />

1 Other cost includes internal logistics cost and logistics cost for other materials such as refractory, spares, etc.<br />

2 Base case logistics cost is estimated as 15% of total steel production cost<br />

SOURCE: DGCIS data – 2013-14

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