Industry 4.0 is critical to fast-track the Indian steel sector's growth

While the change is only constant, the agents of change are not. Building on the lessons learned, the agents change and alter the game's dynamics more intensely than the previous one. Instances are aplenty in the realm of industry. These levers of change have not merely brought in a cosmetic change or improved the way industry previously functioned but have ushered in revolutions that have bearings on all aspects of life and society, not just confined to industry. Steam propelled the first Industrial Revolution and built on that, and the second was powered by electricity. Early-stage automation fueled the third, and now, intelligent computers are driving the Fourth Industrial Revolution (IR) in a way the world hasn't thought of before.

With a synthesis of artificial intelligence, robotics, the Internet of things, blockchain, quantum technologies and many others, the boundaries of physical, digital, and biological worlds are blurred in the Fourth Industrial Revolution. It is becoming an indispensable part of life and beyond at a whirlwind pace. Adaptation to such changes is a must for survival. 

Initiatives like SAMARTH Udyog Bharat 4.0, led by the Indian Ministry of Heavy Industry, have played a crucial role in advancing Industry 4.0 in India, with experiential centres and a thriving ecosystem for its adoption. Like all others, the steel sector is also fast embracing Industry 4.0, which is set to increase efficiencies and safety and spur sustainability goals while aiming to achieve the ambitious 300 million tonne capacity by 2030. The Indian steel sector is the world's second largest. It represents one-eight of the nation's manufacturing GDP. 

By 2040, it is expected that Industry 4.0 will revolutionise the steel industry, with most operations controlled remotely. While this transformation may not diminish the operational workforce, it will redefine their roles, emphasising data analysis and innovation. Adopting artificial intelligence will significantly aid Business Process Optimization, reduce carbon footprint, enhance safety and sustainability, improve operational efficiency, and drive decision-making. 

These steps will translate into an estimated 2-4% improvement in the steel sector's EBITDA and inventory reductions of 10 days or more as they improve client interactions, enhance service levels, and realise significant cost reductions in the long run. 

Prominent Integrated Steel Plants like SAIL, RINL, Tata Steel, JSW Steel, JSPL, and AM/NS have seamlessly integrated Level 0 field sensors, ushered in Level-I and Level-II optimisation systems, implemented robust Enterprise Resource Planning (ERP) systems for production planning, and erected resilient communication backbones to enable vertical integration. Furthermore, they are integrating advanced analytics into day-to-day plant operations, allowing operators to optimise various processes using data-driven insights and paving the way for data-driven decision-making. It is a matter of pride that the World Economic Forum has categorised two steel-making facilities in the country as digital lighthouses. 

These transformations will not be limited to integrated steel plants but to the secondary steel sector. The Steel Ministry is committed to providing policy enablers, laying a roadmap and harnessing its institutions like the National Institute of Secondary Steel Technology and Biju Patnaik National Steel Institute for skilling and capacity augmentation. Adopting new digital technologies will also propel the steel industry to meet India's honourable Prime Minister Narendra Modi's target of reaching net zero emissions before 2070. 

Artificial intelligence (AI) will enhance logistics, simulate green steel manufacturing, and improve overall efficiency in the steel industry. Core operations and maintenance areas can benefit from data analytics, augmented reality/virtual reality-based training and simulations, Industrial Internet of Things (IIoT), cloud-based computing technologies, video analytics, and other Industry 4.0 innovations, making steel production safer and more environmentally friendly. 

Big data analytics will significantly improve the steel-making process by providing a holistic view of the data generated by different equipment and applications in iron and steel plants. Digital assistants are expected to support human workers in decision-making and issue resolution. Data analytics can help steelmakers plan for waste reduction, promote a circular economy, reach higher quality levels, and allow steelmakers to track their carbon emissions. 

Raw material security is crucial for India’s expansion program in steel making. The requirement of Iron ore, coking coal ,ferro alloys and others is expected to increase both in terms of quality and quantity . AI concepts need to be applied in exploring, identifying, and developing new mines by applying the vast available data with Geological Survey of India and the Indian steel plant. 

Digital twins, which create virtual replicas of physical plants, can facilitate informed decision-making, particularly in areas like blast furnaces and offer actionable insights and simulations to improve plant performance. As sustainability takes the global centre stage, the Indian steel sector will not be a follower but a leader in adopting innovative technologies to create state-of-the-art efficient steel plants. The concept of applying Digital Twins for disaster management systems is also worth exploring.

With strategic investments, collaborative efforts, and a firm focus on digitalisation and the availability of a thriving Indian start-up ecosystem for developing focused software as a service model and tapping into ongoing revolutions in IoT, 5G, Drones and digitalisation, the steel sector will ensure the nation's progress and competitiveness in the global market. 

(The writer is Secretary to Government of India, Ministry of Steel.The views expressed are personal)