Tracking Efficiency of the Indian Iron and Steel Industry

  • Aparna SawhneyEmail author
  • Piyali Majumder
Part of the New Economic Windows book series (NEW)


Recycling of steel scrap has been one of the key drivers of improving energy efficiency in steel manufacturing worldwide. Energy intensity of Indian steel plants is higher than the world average, and the strategy of scrap recycling to enhance energy efficiency has gained policy momentum. We track the energy intensity of Indian steel plants during the period 1999–2014, to determine whether scrap-use provided energy-saving benefits. We consider energy intensity as a function of various plant characteristics, while controlling for plant heterogeneity and industry sub-group (by 5-digit National Industrial Classification). We find that energy-intensity of Indian steel plants has declined significantly over the years, and more so for privately-owned steel plants, but the use of scrap in the production process has not helped reduce energy consumption. Indeed scrap users have lower energy-efficiency that may be driven by poor quality of raw materials which our analysis is unable to capture.


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© Springer Nature Switzerland AG 2019

Authors and Affiliations

  1. 1.Centre for International Trade and DevelopmentJawaharlal Nehru UniversityNew DelhiIndia

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