Steelmakers in India face a challenging future as they may not be able to add capacity to keep pace with rising demand in an emerging scenario that looks positive. This was stated by Tata SteelBSE 1.54 % managing director India & S E Asia. "The need of the hour is to steer newinvestments in the industry with appropriate policy support to ensure that production of steel matches the growth in consumption," he said, while commenting on the steel sector outlook for the year ahead and the company's performance.

"The year gone by has been challenging with the industry faced with regulatory issues and sluggish demand from major steel consuming sectors like infrastructure and automobiles. Tata Steel, however, saw an increase in sale of branded products, retail sales and maximising revenue from innovative service offerings," Mr Narendransaid.

"Policy clarity and stability, especially with regard to renewal of mining leases and forest clearances, are imperative to ensure the growth of the steel industry. We are hopeful that the government will address the concerns of the steel industry in this regard in the new year," Mr Narendran said.

"Forecasts indicate that the domestic economy will grow at around 6% buoyed by a stable government at the Centre, economic reforms and a turnaround in manufacturing. This is good news for the steel industry and Tata Steel will continue to service the market with innovative products and services," the Tata Steel official stated. The scope is huge, with the Working Group on Steel for the 12th Plan projecting a crude steel capacity of 140 million tonnes by 2016-17. Commenting anout the company, he said the first phase of Tata Steel's three million tonne Kalinganagar Project will be progressively commissioned from the early part of 2015. "Production from the greenfield project will enable us to further consolidate our leadership position in the industry," Mr Narendran remarked.