SPONGE IRON INDUSTRY SHOWS GROWTH
There are 53 sponge
iron units in the country having a capacity of 7 million tonnes
per annum. Out of these, there are 50 coal based units covering
a capacity of 3.29 million tonnes per annum and 3 gas based units
covering a capacity of 3.76 million tonnes per annum. Five coal
based units covering a capacity of 0.366 million tonnes per annum
are lying closed. The production of the sponge iron in the country
during 2001-02 was 5.44 million tonnes against 5.43 million tonnes
in 2000-01 and 5.32 million tonnes in 1999-2000. During the year
2002-03, the total production upto January 2003 was 5.12 million
tonnes. This information is given in the 2003-04 performance budget
of the Steel Ministry.
Sponge iron is a
metallic product produced through direct reduction of iron and
iron ore pellets in the solid state. It is also known as Direct
Reduced Iron (DRI) or Hot Briquetted Iron (HBI). This is a substitute
in steel melting scrap used mainly in electric steel making basic
oxygen furnaces. In order to push up the production of Sponge
Iron in the country and to gainfully utilise natural resources,
the Government is encouraging the development of this sector.
India emerged as the largest sponge iron producer in the world
in 2001. This sector not only saves foreign exchange by substituting
the imported steel melting scrap but is also earning foreign exchange
through exports.
