India granted permits to expand steel production capacity by 11.6 million tonnes between April and June

The expansion of steel production capacity in India continues to grow at a rapid pace. In the first quarter of the 2027 financial year (April–June), the country’s regulatory authorities approved new projects with a combined capacity of 11.6 million tonnes of steel per year, which have received environmental clearance (EC) and construction permits (CTE). This was reported by BigMint.

According to BigMint, around 5.9 million tonnes of capacity received construction permits (CTE), whilst a further 5.7 million tonnes passed environmental clearance (EC). These approvals serve as the main leading indicator of the expansion of the sector’s future production capacity.

The eastern regions of the country, rich in mineral resources, continue to attract the largest share of investment — they account for almost three-quarters (75%) of all projects approved in the first quarter:

1. Odisha: topped the ranking with 3.37 million tonnes. All of the state’s projects are focused on basic oxygen furnace (BOF) production, confirming its status as a centre for integrated metallurgy.
2. Jharkhand: came second with a volume of 2.57 million tonnes (2.12 million tonnes from induction furnaces (IF), 0.44 million tonnes from electric arc furnaces (EAF)).
3. Chhattisgarh: recorded 2.53 million tonnes (1.30 million tonnes – BOF, 1.23 million tonnes – IF).
4. West Bengal: received approval for 1.26 million tonnes (of which 1.06 million tonnes – IF).

The remaining volumes were distributed among the states of Tamil Nadu (0.60 million tonnes), Damanshiri and Diu (0.58 million tonnes), Uttarakhand, Maharashtra, Bihar and Puducherry.

The breakdown of approvals indicates active development in the secondary metallurgy sector. Projects based on induction furnaces (IF) accounted for 54% of all approvals (6.3 million tonnes). The share of basic oxygen furnace (BOF) production reached 40% (4.7 million tonnes), whilst electric arc furnaces (EAF) accounted for 6% (0.64 million tonnes).

The current investment cycle is clearly focused on the construction sector. All approved rolling capacity relates to long products (6.1 million tonnes). By contrast, no approvals were recorded for flat products (hot-rolled coils or sheets) in the first quarter. By way of comparison, in the 2026 financial year, flat steel accounted for a significant share — 16.21 million tonnes compared with 22.41 million tonnes of long products.

As reported by GMK Center, India accounts for over 60% of new blast furnace steel production capacity worldwide. Around 93% of the country’s new pig iron production capacity is based on blast furnace technology. At the same time, analysts note that only 5% of the planned new blast furnace capacity in India has already moved to the actual construction stage, leaving scope for adjusting investment decisions towards less coal-intensive technologies.