Speaking at a programme at Tata Steel on Saturday, Pandey noted that the prices of iron-ore have increased by over 60 per cent. He also expressed his concern over the imbalance between the demand and supply of steel and said that the top priority is to increase the production in the country.

To accelerate the production, the company has set up the ‘H’ blast furnace with an inner diameter of 3,814 cubic metres and a production capacity of 7,150 tonnes per day. The steel secretary inaugrated the furnance, which is said to produce three per cent of the crude capacity of the country, on Saturday.  

A consortium of Tata Steel, Larsen & Toubro and Paul Wurth has erected the ‘H’ Blast furnace, the latter being the technology provider.

“For the first time in 2007-08, we have become net importers of steel,” said Pandey. The consumption of steel is growing by 12-13 percent and the production is increasing by 6 percent, he added.

He, however, put forth that the production of steel in the country by 2011-12 will be 124 million tonnes and by 2015-16, the country will be the second largest producer of steel.

B Muthuraram, managing director of Tata Steel also voiced concerns on the issue and said if things continue at the same pace, India will have to import 25 million tonnes of steel by the next five years.