Question

How are integrated steel plants different from mini steel plants? What problems does the industry face? What recent developments have led to a rise in the production capacity?

Answer 1

Integrated steel plants are different from mini steel plants in many aspects. An integrated steel plant is large and handles everything in one complex—from integrating raw materials to steel making, rolling and shaping. On the other hand, a mini steel plant is smaller, has electric furnaces, uses steel scrap and sponge iron, and has re-rollers that use steel ingots as well. It produces mild and alloy steel of given specifications.
The problems faced by this industry are: 

(a) high production costs and limited availability of coking coal; 

(b) lower productivity of labour; 

(c) irregular supply of energy; and 

(d) poor infrastructure.
Recent developments that have led to a rise in the production capacity of this industry are liberalisation and Foreign Direct Investment, with help from private entrepreneurs.