Union government has directed large steel companies in public sector to step up research and development (R&D) and enhance R&D investment up to 1% of their sales turnover.

Addressing the meeting of the consultative committee of the ministry of steel and mines to discuss R&D in iron and steel sector in India, Narendra Singh Tomar, minister of steel & mines said, "We have issued an advisory to all the large steel companies to step up R&D and enhance R&D investment up to 1% of their sales turnover. SAIL has corporate R&D center at Ranchi. RINL is also expending R&D infrastructure. Large private sector companies have also setup good R&D facilities for addressing their problems.

Tomar said the problems in raw material area need to be addressed to utilize low grade ore and high ash coal through R&D and technology interventions. Steel minister stressed the need to pursue R&D for development of value added products for which we are dependent on import. Secondary steel sector is also requiring R&D interventions.

India was the fourth largest steel producer in the world after the China, the Japan and the US. However, during the first five months of this calendar year, India has achieved the 3rd position in the global steel production, Tomar said. He elaborated that Indian steel industry is growing at a reasonably good pace and last year the growth in crude steel production in India is more than 8%.

Rakesh Singh, steel secretary said the ministry is facilitating growth and development of steel industry through various policy measures. "The ministry of steel has fixed a target to increase steel production capacity to 300 million tonne by 2025. The target is no doubt is very ambitious and Ministry of Steel is taking follow up action in this regards. Several plants have already been expanded and SAIL is in the process of modernizing and expending its capacity from the present level of 12.8 million Tonne to 21.4 million tonne."

Steel secretary said, "R&D scenario in steel sector is improving. More dedicated Research and Technology Development programs would however, be required and we are targeting that the steel companies must spend 1% of their sales turnover on R&D to amply and meet the requirements of make in India program through zero defect and zero effect."