Foreign Direct Investment in Steel

The Union Minister of Steel Shri Beni Prasad Verma has said that Foreign Direct Investment (FDI) inflows into the country in the metallurgical sector during the last three financial years is given below, which shows that there is a net increase in foreign direct investment during 2010-11:-

Year	Amount of FDI Inflows
	In Rs. Crores	In US$ Million
2008-09	4,152.56	959.94
2009-10	1,999.30	419.88
2010-11	5,023.34	1098.14

Source: Department of Industrial Policy & Promotion, Ministry of Commerce.

In a written reply in the Lok Sabha today, he said that following are the major investments proposed by foreign steel producers in the Indian steel industry in the last three years:-

Proposals to set up steel plants in India
Producer	Proposed State	Proposed Annual Capacity	Proposed Investment (Rs cr)
Posco	Orissa	12 mtpa	52,000
Posco	Karnataka	6 mtpa	32,000
Arcelor-Mittal	Orissa	12 mtpa	40,000
Arcelor-Mittal	Jharkhand	12 mtpa	50,000
Arcelor-Mittal	Karnataka	6 mtpa	30,000
NMDC-Severstal	Karnataka	5 mtpa	Both will jointly invest Rs 9,000 crore
Tata Steel-Nippon Steel	Jharkhand	60,000 tonnes	2300

He said, in addition to these, the following are some of the other investments made by foreign investors in the Indian steel industry:

· Acquisition of 14.99 per cent stake in JSW Steel Ltd by JFE Holdings of Japan

· Acquisition of 29 per cent stake in Uttam Galva Steels Ltd by Arcelor-Mittal

Shri Verma said that in order to monitor and coordinate various issues, concerning steel major investments in the country, an Inter Ministerial Group (IMG) has been constituted in July 2007 under the Chairmanship of Secretary (Steel), represented by other Ministries / Departments of the Central Government such as Industrial Policy & Promotion, Railways, Shipping, Road Transport & Highways, Mines, Environment & Forests, as well as the Chief Secretaries of the concerned State Governments. Inter Ministerial Group (IMG) on steel sector is a forum to coordinate, monitor and review issues affecting steel sector investments. The individual issues raised during the Inter Ministerial Group meetings are further dealt by the concerned Ministries/Departments and State Governments in accordance with the provision of the extant rules and policies.