I disagree on the logic of this though the conclusion that GOI should generally not be in the steel industry is something I too believe in.
Capex Heavy industry, no private player would do in a new area unless the GOI kickstarts it. By new area, a new location greenfield set up. JSW was less than 80 INR for years till it repaid its 20K cr debt and then it shot up. GOI spending money with intent derisks for other players to come into the same area. Target is 300MT and we are nowhere close to it at 110M now. Someone has to throw n 1-5B$ to show intent. Post set up of factory, historically PSUs have not done great unless in monopoly situation.
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