After oil from Barmer put Rajasthan on the global map, it is the turn of iron ore to make the state richer. India's largest steel producing company, Steel Authority of India (SAIL), has discovered iron ore deposit in Bhilwara district. The company is conducting a feasibility study to extract iron ore.
SAIL chairman S K Roongta said iron deposit was discovered in Bhilwara district. "However, it is too early to say anything as we have to study the size of deposit and find out whether it would be sufficient for commercial exploitation. All depends on further evaluation of deposit and its commercial viability," he said.
Roongta was speaking at a felicitation function organised by the Rajasthan Chamber of Commerce and Industry (RCCI) on Sunday. Roongta belongs to Bagar in Jhunjhunu district and is an alumni of Birla Institute of Technology, Pilani.
Roongta said the steel sector has seen its ups and downs in the last two years. After a peak rise in demand and prices, the steel prices fell steadily following the global meltdown. However, it seems to have stabilised now, he said.
Speaking about the global scenario, Roongta said in the last five to six years, China has been dominating the steel sector, both in production and demand. China accounts for about 45% of the production of steel and it has a massive market due to heavy investment in infrastructure. The sector has seen some consolidation with the large groups of L N Mittal acquiring small ones which in a way has helped to withstand volatility in the global market."
Roongta said despite talks of emphasis on infrastructure in India, it has not picked up momentum. "Domestic market is growing at a fast pace. With high disposable income among people of rural areas, implementation of sixth pay commission, construction activities have gathered pace. This would continue to keep the demand for steel and cement in the country."
Roongta said, "Creativity, innovation and entrepreneurship should drive the manufacturing sector. The world is looking at India with great expectations. It had to be met with entrepreneurship and the spirit of innovation in products and services."
SAIL, with a turnover of Rs 48,681 crore, is among the top five profit earning company in the country. It posted a net profit of Rs 1,300 crore in the first quarter.
RCCI honaray secretary K L Jain presided over the meeting.
Source: Times Of India
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