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sponge iron industry –past-present-future - SIMA

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C – Indicates under construction<br />

Source : Midrex tech.<br />

FUTURE OF GAS BASED SPONGE IRON<br />

IN INDIA<br />

So far growth of gas based <strong>sponge</strong> <strong>iron</strong><br />

<strong>industry</strong> in India has been stagnant with mainly<br />

3 plants operating. Primary reasons for this<br />

stagnancy are low availability and high pricing<br />

of natural gas as compared to Middle East<br />

countries, High initial capital investment etc.<br />

High Priorities of allocating Natural Gas mainly<br />

given to power, transport, fertilizer, domestic<br />

users etc compared to Sponge <strong>iron</strong> <strong>industry</strong>.<br />

This situation could, however, change in the<br />

near <strong>future</strong> and natural gas based <strong>sponge</strong> <strong>iron</strong><br />

<strong>industry</strong> in India would have something to<br />

cheer for. Looking at demand / supply gap of<br />

natural gas, govt. of India is taking some<br />

serious initiatives. Huge investments are<br />

announced in laying down extensive pipeline<br />

network for natural gas across the country to<br />

meet the growing demand. As per map of India<br />

below in annex I , highlighting the network of<br />

natural gas pipeline ( existing , proposed and<br />

<strong>future</strong> proposed ). As more gas lines become<br />

available in time to come, definitely availability<br />

of natural gas would not be a major area of<br />

concern for <strong>sponge</strong> <strong>iron</strong> <strong>industry</strong>. Along with<br />

this availability and by setting up some strong<br />

policies framework by the Indian government<br />

toward strengthening India’s gas based<br />

<strong>sponge</strong> <strong>iron</strong> <strong>industry</strong>, natural gas and<br />

alternative natural gas based technologies of<br />

DRI production could experience a boom in<br />

India. Also, considering the env<strong>iron</strong>mental<br />

issues, which Indian and global steel <strong>industry</strong><br />

is facing, natural gas based <strong>sponge</strong> <strong>iron</strong> will<br />

certainly be the metallic of <strong>future</strong>. This metallic<br />

will certainly redefine the steel <strong>industry</strong> from<br />

being a polluting to nonpolluting <strong>industry</strong> in the<br />

time to come.<br />

JANUARY-2011/19

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