The indigenous Ferroalloy production has started only in 1943 with the advent of the setting up of two 1500 KVA capacity furnaces by Mysore Iron and Steel Ltd. Ferro alloys are simply indispensable for any type of steel making. In fact for making alloy and special steel their role assumes dominant importance both from the points of view of quality of the product and economics of its production. The planning for the Ferro alloy production therefore must go hand-in-hand with that for steel production. The Ferro alloys industry has expanded in the sixties and seventies to a remarkable extent. We now not only produce sufficient amount of common high carbon Ferro alloys like Ferro-manganese, Ferro-silicon, and Ferro-chromium etc. We also produce special Ferro alloys though not as much are required. If we decide to erect additional steel plants or if the present steel plant capacities are increased we may again fall short even in common Ferro alloys. There is therefore no reason to be complacent. Many elements like silicon, Manganese, chromium, calcium Magnesium, Titanium, Molybdenum, vanadium, zirconium, boron, columbium etc. alloyed with iron go under the general name Ferro alloys and are use in the production of carbon steels, alloy, tool and stainless steels. The natural sources of these elements are in the form of oxides from which they are reduced to their metallic state. The heats of formation of these oxides are generally very high hence their reduction to metals normally calls for very high energy requirement. The uses of Ferro alloys are as grain refiners in the manufacture of plain carbon steels, or as alloying elements in alloys steels. There is a limited use for Ferro alloys in non ferrous metallurgy for making alloys such as nickel chromium iron alloys, manganese bronze etc. Ferro silicon is an essential addition to the molten steel bath during the last stages of refining for deoxidizing purposes. It is also use for adding silicon to high silicon steel such as those used for the production of spring’s electric sheets. Alloys of 70-80% silicon are used as a ladle addition in grey iron foundries. Ferro manganese is employed as a deoxidizer and alloys constituent to harden toughen steels. Manganese combines readily with sulphur, forming MnS, which is less harmful than FeS in steel. Ferro chrome is used for the production of hard chromium steels useful for armour plats and projectiles. It is extensively used in the manufacture of heat resistant and corrosion resistant alloys. The former grade is used as ladle addition to cast iron and the latter in alloys steel manufacture. Ferro molybdenum it is used as an alloying aliments in die steels armament steels such as armour plates, nickel chromium constructional casehardening steels, high speed steels, etc. as molybdenum increases shock and creep resistance properties. Ferro phosphorus it is used as a ladle addition for cast iron for the manufacture of piston rings, liners, etc. for increasing water resistance. It is added in small amounts in open hearth screw steels, to make them free cutting. Other Ferro alloy is used in special steels as a hardening agent and in non ferrous metallurgy as a degasifier and deoxidizer. Ferro cerium is employed as a scavenger to free bronzes, Monel metal and copper casting from oxides and gaseous inclusion. Ferro columbium is used in stainless steel to prevent weld decay i.e. inter-granular corrosion Ferro titanium is deoxidizer and a scavenger in steel manufacture of high speed steels. Ferro tungsten is utilized in the manufacture of high speed steels. Ferro vanadium is added to the ladle in open hearth and to the furnace in basic electric furnace practice as vanadium is a good scavenger and a grain refiner. The industry registered lowered lower exports of Ferro alloys in tonnage as compared to the previous year. The Indian Ferro Alloy Industry is more than four decades old, and produces Bulk and Noble Ferro Alloys. Though this Industry is not as old as the steel industry, its capacity has increased substantially from a humble start in the fifties, meeting the requirement of the steel industry in the country. The growth of the steel industry has not picked up as expected, whereas the growth of the Ferro Alloy Industry has stepped up, much more than the expected level. It has a lot of potential to increase its exports in the near future. Ferro alloys are one of the vital inputs required for producing special types of steel and used as additives inputs especially in the producing of Alloys and special steels. India has been bestowed with adequate resources of all basic raw materials required for the production of Manganese, Silicon and Chrome Alloys. In spite of serious difficulties in Indian Steel Industry during the recent years, the total finished steel production has touched 30.61 million tonnes, recording a growth of 4.6 % over 29.27 million tonnes achieved for the previous year (2004-05). The imports of steel at 1.37 million tonnes showed a decline of 3 % compared to 1.42 million tonnes recorded during the previous years. The export of steel at 2.73 million tonnes was higher by 2.3 % compared to 2.66 million tonnes recorded for the previous year. The apparent consumption of steel grew by 2.6 % and went up to 27.21 million tonnes as against 26.53 million tonnes, recorded during the previous year.The capacity increase of the Ferro Alloy industry in general, followed the course to meet the planned target of steel industry in the country, and also to remain potential exporters of Ferro Alloys in the international market, to earn substantial foreign exchange for the country. A Major part of the special Ferro alloys that are made today are from Imported concentrates of the corresponding elements. The technology for the production of low-carbon and medium-carbon Ferro manganese is yet to be development. Yet the capacity of the individual unit has not gone beyond 10,000 KVA. Today, we are familiar with operation of the 24,000 KVA furnaces which is in operation for the production of alloys. Currently there are 11 Ferro alloy producers and are producing most of the steel plant requirements in the country and are also having export programmers. There are 14 manufacturing units holding industrial license for the manufacture of different types of Ferro alloys with an aggregate installed capacity of 258000 tones per annum. India is projected to have a positive growth of 2 per cent and China is expected to witness negative growth of 5 per cent in apparent steel consumption during 2009. In India, Hon’ble Minister of Steel announced, the government will make all endeavors to see that the 124 mt steel capacity projected by the year 2011-12. This will be realized by way of policy facilitation and vigorous co-ordination efforts with the concerned state governments and the central ministries. During the current year, the three Public Sector Units: SAIL, RINL and NMDC have planned to invest nearly Rs. 13 billion in their on-going capex and modernization projects. Indian Ferro Alloy Producers Association (IFAPA) is very much concerned about the domestic availability of manganese ore for the member units. Once these plants come into operation, it is estimated that around 60 per cent of MOIL’S manganese ore would be consumed by the SAIL-MOIL Ferro Alloy Plant, Bhilai; MOIL-RINL Ferro Alloy Plant, Visakhapatnam and MEL Plant at Chandrapur. The industry would be left with no option, but to depend on 100 per cent imports of high grade and medium grade manganese ore in the near future. Though the future is looking bright for Ferro alloys industry, considering the expected increase in the steel production, the industry will face challenges in relation to procuring raw materials, particularly manganese raw materials, particularly manganese ore, chrome ore and the reluctant metallurgical coke, in the coming years. Strong growth in stainless steel is expected in the near future with generally healthy economic conditions over the next few years. Demand for Noble Ferro Alloys has been growing at an average rate of 14% since 2000 and looking to the expected growth of the Steel industry, demand of all Noble Ferro Alloys is likely to grow at about 18%. Indian Steel Industry has seen some increase in prices and expected to see better realization during the coming years.