India has signed 38 pacts worth $5 billion aimed at boosting production of capital goods for the iron and steel industry. Memoranda of Understanding (MoU) was reportedly signed at a conclave held by the Confederation of Indian Industry (CII) jointly with Mecon and the Steel Ministry. Of the 20 companies who signed the MoUs, at least 12 were foreign players, which included China-based ACRE, Italy-based CSM, and Luxembourg-headquartered Paul Wurth, Danieli Corus, which supplies customised solutions for the primary metals industry. The list also includes domestic steel producers and heavy equipment manufacturers, including SAIL, JSW, Bharat Heavy Electricals, MECON, Heavy Engineering Corporation, among others.
The MoUs covered areas that include agglomeration, blast furnaces, coke oven, steel making, waste-to-energy and iron ore crusher, rolling mills and beneficiation. India’s target to boost its crude steel capacity by 2030-31 is 300 million tonne (mt) from the current 134 mt.
An investment of nearly $128 billion can be expected in the coming 10-12 years from the Indian steel industry for adding the new capacity. As reported, this will require import of a huge number of critical plants and equipment worth nearly $25 billion. Additionally, to fulfil the requirements of the steel industry by 2030-31, spares worth $500 million are required to be imported.
According to reports, the steel ministry is drafting a purchase preference policy, to make sure that the MoUs result in production of capital goods. It will ensure that products and product categories not covered by the DMI & SP (Domestically Manufactured Iron & Steel Products) policy, will get covered under the planned policy as suggested by the Department of Industrial Policy and Promotion.