India’s rail network is forecast to consume 17mn mt of steel in the next five years for the development of a dedicated freight corridor. The steel production projection was estimated by the Dedicated Freight Corridor Corporation of India (DFCCIL).
The project aims to minimise congestion at various terminals and junctions through multi-tracking, high-speed projects. Its objective is to cater to the growing demand for efficient freight transportation system across India. Also, a total of 58 supercritical infra projects are likely to boost the steel demand.
DFCCIL officials spoke at an event organised by the Ministry of Steel and the Confederation of Indian Industry to identify the supply void and opportunities available in the steel industry. At the event, a memorandum of understanding was signed between Steel Authority of India and the Indian Railways for the fulfilment of forged axles and wheels.
In 2019, Indian Railways consumed 7mn mt of steel, up by 17pc from the prior year.