If the present consumption trend continues, India may feel the need for creation of additional steel capacity in another three years, according to managing director of Tata Steel, B Muthuraman.

Muthuraman, who was in Bhubaneshwar to attend a function marking the inauguration of office building of Utkal Chamber of Commerce and Industry in Bhubaneswar, said that steel consumption trend is showing a growth of 5 to 6 per cent.

At present, the country's steel capacity is estimated at 28 milliontonnes as against consumption of 25 million tonne.

If the present demand growth rate continues, the country will be in deficit in another three years requiring addition of capacity to the tune of 1.5 to 2 million tonnes per annum thereafter, he observed.

Muthuraman criticised Orissa government's policy of setting condition for value addition of minerals within the state for all investors seeking to take up mining activity in the state.

Orissa should focus on inherent competitiveness which is exploration and mining because of its vast natural resources.

Stating that the chain of value addition is an unending process, he said, value addition of minerals, which is a power intensive industry, may not be always cost effective in Orissa.

Citing the example of Australia, Muthuraman said, it had been hung up on a similar clause of value addition till early 1960s which did not take that country anywhere.

But following a shift in focus from value addition to mining and trading in minerals, the Australian economy has grown many fold, he said and advised the Orissa government to take a leaf out of this experience to push forward the industrialisation process.

Speaking on the occasion, Orissa industry minister KV Singhdeo rued that Orissa has not desired level of industrialisation despite its potentials.

While chairman cum managing director of Nalco, C Venkataraman in his address blamed the lack of entrepreneurial skills of the people for Orissa's backwardness, the president and CEO of Indal, SK Tamotia urged the state government to review its Industrial Policy Resolution 2001 so that more incentives could be provided to industry to attract investment.