BL reported that slowdown in investments coming into the steel sector has forced the Indian steel ministry to push back to 2012-13 the target date to achieve 124 million tonnes a year domestic steel production capacity.

Mr Atul Chaturvedi secretary steel told that “The time frame to achieve the target of 124 million tonnes domestic steel production capacity would now be 2012-13, this is due to some slow down in investments last year because of the recession.”

Mr Chaturvedi, however, added that investments have now picked up again and the production target could be achieved with an error margin of 5% to 8%.
He said “I personally feel that with an error margin of 5% to 8%t we should be able to achieve the target of 124 million tonnes production capacity. The investments have now picked up and the industry has come out of recession; so we expect there might be some slippage in time but we are hopeful that by 2012-13 the target would be achieved fully.”

As per report, the current steel production capacity in the country is 62 million tonnes.

The steel ministry had earlier envisioned doubling the production capacity by 2011-12.