9SEPTEMBER 2024INDIA'S STEEL SECTOR ESTIMATED TO HIT $2.7B REVENUE MILESTONE: DELOITTECIL TO PURSUE SECURING LITHIUM FROM LOCAL & OVERSEAS VENDORSThe investment in process and digital technologies across India's steel value chain is expected to significantly rise to USD 2.7 billion by 2030, according to a FICCI-Deloitte report. These advancements will enhance Coal India Ltd (CIL) announced on Wednesday that it is actively pursuing the acquisition of critical minerals such as lithium, both within India and internationally, as part of its strategy to reduce the country's dependence on imports of these essential resources. Critical minerals, including lithium and cobalt, are key components in the production of clean energy technologies, especially in batteries for electric vehicles.CIL Chairman P M Prasad stated during the company's 50th Annual General Meeting that the company aims to secure these mineral assets to support India's shift towards sustainable energy. Additionally, CIL will continue participating in the e-auction of critical mineral blocks offered by the Ministry of Mines.CIL recently took a significant step into non-coal mining by emerging as the preferred bidder for the Khattali Chotti graphite block in Madhya Pradesh during a tranche-II auction held by the Ministry of Mines on July 9. This marks CIL's first venture into mining non-coal minerals.Prasad emphasized CIL's commitment to ensuring sufficient coal supply for the country while also working towards greater self-reliance in fuel and mineral resources. technological capabilities, contributing to a more efficient and sustainable mining and steel industry in the country. This rise in investment marks a leap from the current USD 1-1.2 billion projected for 2024.The year 2030 is pivotal for the Indian steel sector as the National Steel Policy 2017 envisions expanding the nation's steel-making capacity to 300 million tonnes by that year. In tandem with this, per capita steel consumption in India is expected to increase to 160 kg by 2030 and further to 220 kg by 2047.The report emphasizes that digital tools can help the steel industry achieve better environmental compliance by improving energy efficiency and enhancing emissions monitoring. In addition, digitalization can offer the flexibility and scalability needed to adapt to evolving market conditions, foster innovation, and improve worker safety.Rajib Maitra, Partner at Deloitte India, highlighted the transformative impact of AI and digital technologies on the mining and steel sector while acknowledging the practical challenges of integrating new systems with existing infrastructure and managing the associated costs of such technological upgrades. The integration of digital technologies is seen as a key factor in unlocking new capabilities across the industry.
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