The story
Mandi Gobindgarh became Punjab's steel town after Partition, when re-rolling mills came up on the GT Road and rail line between Ludhiana and Ambala. Mills melted scrap in induction furnaces and rolled it into bars, angles and channels for construction across north India. The town also grew foundries, forging and rolling-mill machinery makers. Many units have closed since 2013 as power costs rose and large steel plants took market share.
In numbers
There are 247 steel units in Fatehgarh Sahib district of Punjab, of which 74 are induction furnaces and 2 are electric arc furnaces.
Ministry of Steel — Lok Sabha unstarred question replySince 2013, 62 of the 110 steel induction units in the town have shut, while 30 of the 70 foundries and about 200 steel rolling mills have closed down.
The Tribune — Mandi Gobindgarh's steel business faces slow death
Ways in for a newcomer
- Trading TMT bars and structural steel to builders across north India
- Scrap collection and sorting for induction furnaces
- Rolling-mill spares, rolls and machinery repair
- Fabrication of steel structures from local sections
Problems the cluster faces
- High power tariff for induction furnaces
- Competition from large integrated steel plants
- Pollution-control requirements
- Scrap price swings
Businesses to start here
Steel Re-Rolling Mill (MS Rounds, Angles, Channels, Tor Steel) →Stainless Steel Ingots (Induction Furnace) →Steel Castings (Induction Furnace Foundry) →Forging Blanks for Spur Gears →Metal Scrap Recycling Unit →High Duty Iron Castings (Foundry) →