1. 3rd India International DRI Summit - 2016 at
Hotel Shangri-La, New Delhi, INDIA on
19th August, 2016

2. Snapshot of Indian DRI Industry by Executive Director , SIMA
Deependra Kashiva
Executive Director , SIMA

3. Genesis of Indian DRI Industry
India’s growth story started with the initiative of Ministry of Steel when they together with UNDP set up a demonstration plant at Paloncha in 1980 to test the suitability of Indian iron ore and coal for the production of the DRI.
DRI industry delicensed in 1985 with a sole aim to restrict imports of steel scrap to save precious foreign exchange.
On the initiative of GOI, three gas based DRI plants came into existence to utilize the natural gas of Bombay High which was being flared up .

4. No Greenfield natural gas based DRI/HBI plant came up after
1994 (22 years)
Major growth in coal based sector from to
Domestic DRI capacity increased by about 280% in nine years during
Today India has world’s largest single location coal based and gas based DRI plants.
India is the only country in the world making DRI from coal gasification .
India is the largest DRI producer in the world for the last 13 consecutive years and accounts about 24.3% of world production.

5. Industry Profile 1. Number of Plants Gas Based 5 Nos
Coal Based Nos
Total Plants Nos
2. Capacity
Gas Based
12.60 million tonnes/year
Coal Based
36.03 million tonnes/year
Total
48.63 million tonnes/year

6. Indian DRI/HBI Production
Year
Gas Based(MT)
Coal Based (MT)
Total (MT)
5.26
11.01
16.27
5.85
14.14
19.99
5.28
16.05
21.33
6.17
16.82
22.99
6.19
17.06
23.25
5.15
15.41
20.56
3.93
14.74
18.67
2.61
15.49
18.10
3.14
14.32
17.46
3.92
13.95
17.87

7. M I L O N T E S
( Explain the trend )

8. DRI contribution to Indian steel production
DRI/steel scrap - EAF/IF accounted for 56% of the steel
produced in India in

9. Challenges Before the Industry
Threat from the imports of steel melting scrap
Sluggish market
Shortage of natural gas

10. 1.Threat from the Imports of Steel Melting Scrap
Steel scrap is not a manufactured product (waste generation), has
flexibility to adjust the sales price to manipulate the market while
DRI is a manufactured product, has no flexibility in pricing due to
standard cost structure based on raw material inputs .

11. High volumes of import of scrap severely impact DRI
producers . Due to the sluggish international steel market,
additional scrap is finding its way into India.
Year
Import (million tonnes)
4.20
4.90
8.14
4.57
5.40
6.70

12. Million Tonnes
4.20

13. SIMA’s View
There should be judicious duty structure on steel melting scrap taking
into consideration of huge investment, employment and contribution to
the exchequer by DRI industry. We firmly believe that DRI producers
and steel producers using steel scrap need to grow together as they
are complementary and supplementary to each other.

14. 2. Sluggish Market Prospects to boost steel demand
Demand of DRI has drastically come down impacting bottom lines of almost all the DRI producers because of lower steel demand due to economic slow down in India and world.
Prospects to boost steel demand
Make in India programme earmarked $ 87 billion worth of investment in new infrastructure and manufacturing project over next 5 years.
Railways plans to expend $ 125 billion on its network in next 5 years.
Housing sector

15. 3. Shortage of Natural Gas
Total requirement: mmscmd
Allocation to three existing gas based plants:
APM gas mmscmd
RIL KG D mmscmd
Present availability mmscmd (about 15%)
Imported LNG: 2/3 times costlier, too costly to afford
Contribution of NG based DRI plants in total DRI production
is coming down very fast. In , it has come down to
13.59% compared to 26.66% in

16. Innovative Actions taken to substitute NG
Use of Coke Oven Gas
Use of Corex Gas
Use of Coal Gas
Above measures are expected to substantially increased gas based DRI/HBI production in India.

17. About SIMA

18. Sponge Iron Manufacturers Association (SIMA) - an all India
apex industry body of Indian DRI industry. Established in 1992
with headquarter in Delhi.
About 100 direct members and about 150 indirect members
through regional associations.
All medium and major DRI producers are its members.

19. To fulfill the multi-dimensional role of providing a common
Main Functions of SIMA
To fulfill the multi-dimensional role of providing a common
platform for exchanging knowledge, experience & growth
related aspects.
To review the industry vis-a-vis Government policies, global
developments and market feasibilities.
To interface with Government to promote & protect the ever
growing needs of the members in fast changing business
environment.
To have updated database from the national and global point
of view to keep the members informed of growth options and
future prospects for decision making.

20. To project the achievements of the members and industry with
an objective to create a corporate image for DRI industry’s
contribution both in domestic and international scenario.
To organize national and international technical seminars to
apprise the members about the latest technological develop-
ments in the area of process and equipment technologies,
exploitation of inferior grades of raw materials , energy efficiency
etc.
To bring out an in-house magazine “DRI UPDATE” with a
clear focus on technological innovations in the area of DRI
production to enable its members to explore the avenues to
reduce their cost of production.

21. SIMA’s CSR Activities
First time in its 23 years history, SIMA organized rural health
check up camps at Lahanda and Gobindpur , two tribal villages of
Odisha, in 2015.
Such CSR activity is also being planned in current FY

30. To make Hon’ble Prime Minister’s initiative of “Make in India” a grand success, it is imperative for the Indian steel industry to grow. And for sustainable growth of Indian steel industry, it is imperative for Indian DRI industry to grow.