PLI to generate investment of Rs 300 bn in specialty steel sector
ECONOMY & POLICY

PLI to generate investment of Rs 300 bn in specialty steel sector

Jyotiraditya M Scindia, Union Minister for Civil Aviation and Steel, stated that the ministry has signed 57 Memorandums of Understanding (MoUs) with 27 companies for specialty steel under the PLI scheme, which is expected to generate approximately 30,000 crore in investment and add approximately 25 mt of specialty steel capacity over the next five years.

This will also generate more than 60,000 jobs and help India become the third-largest economy by 2030-31.

Scindia said in a video message to the India Steel 2023 conference, "We have emerged as the world's second-largest steel producer, with per capita steel consumption increasing from 57 kg to 78 kg over the last nine years. This growth is having manifold results -- collaborative efforts of industry and government wherein government plays the role of facilitator and industry drives this engine of growth,” he said.

"The Steel Ministry is in the process of aligning policies with the Gati Shakti Master Plan, which will complement the Rs 100 trillion investment plan for infrastructure development over the next five years; this will boost demand for steel in various sectors, thereby enhancing steel usage," he said.

Faggan Singh Kulaste, Minister of State in the Ministry of Steel and Rural Development, stated at the event, "In 2013-14, steel production capacity was approximately 100 million tonnes, and crude steel production was approximately 82 million tonnes, whereas in 2022-23, steel production capacity increased to 154 million tonnes, and crude steel production increased to 125 million tonnes."

"This historic growth has been made possible by the steel sector's business-friendly policy, reforms, and transparency,” he said.

He stated that the Vehicle Scrappage Policy for the Circular Economy will assist the steel industry in obtaining the most scrap. "This policy will also be helpful in the production of green steel," he said.

To keep up with the country's rapid modernisation, economic growth, and nation development, the steel industry anticipated a significant demand for steel, particularly from the manufacturing, engineering, construction, and infrastructure sectors.

"The Government has already envisioned this in the National Steel Policy," said Nagendra Nath Sinha, Secretary, Ministry of Steel, "which aims to increase per capita consumption of steel to 160kg, while aiming to augment production capacity to 300 MT by 2030."

The steel sector, which accounts for approximately 2% of Indian GDP and employs over 2 million people, has requested that the Indian railways provide more waggons for the transportation of raw materials and finished products.

"The average speed of rail is 20 kilometres, compared to 35 kilometres globally," said Sanjay Rath, executive vice president, Commercial & Logistics Centre of Excellence, JSW Steel. In India, logistics costs are high because the industry is forced to transport approximately 40% of its materials on roads, which is costly."

The three-day exhibition features cutting-edge technologies, products, and solutions from leading private-sector companies such as Tata Steel, JSW Steel, Jindal Steel & Power, AM/NS India, Mahindra & Mahindra, Welspun Corp, and L&T.

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The 14th RAHSTA Expo, part of the India Construction Festival, will be held on October 9 and 10, 2024, at the Jio Convention Centre in Mumbai. For more details, visit: https://rahstaexpo.com

Jyotiraditya M Scindia, Union Minister for Civil Aviation and Steel, stated that the ministry has signed 57 Memorandums of Understanding (MoUs) with 27 companies for specialty steel under the PLI scheme, which is expected to generate approximately 30,000 crore in investment and add approximately 25 mt of specialty steel capacity over the next five years.This will also generate more than 60,000 jobs and help India become the third-largest economy by 2030-31.Scindia said in a video message to the India Steel 2023 conference, We have emerged as the world's second-largest steel producer, with per capita steel consumption increasing from 57 kg to 78 kg over the last nine years. This growth is having manifold results -- collaborative efforts of industry and government wherein government plays the role of facilitator and industry drives this engine of growth,” he said.The Steel Ministry is in the process of aligning policies with the Gati Shakti Master Plan, which will complement the Rs 100 trillion investment plan for infrastructure development over the next five years; this will boost demand for steel in various sectors, thereby enhancing steel usage, he said.Faggan Singh Kulaste, Minister of State in the Ministry of Steel and Rural Development, stated at the event, In 2013-14, steel production capacity was approximately 100 million tonnes, and crude steel production was approximately 82 million tonnes, whereas in 2022-23, steel production capacity increased to 154 million tonnes, and crude steel production increased to 125 million tonnes.This historic growth has been made possible by the steel sector's business-friendly policy, reforms, and transparency,” he said.He stated that the Vehicle Scrappage Policy for the Circular Economy will assist the steel industry in obtaining the most scrap. This policy will also be helpful in the production of green steel, he said.To keep up with the country's rapid modernisation, economic growth, and nation development, the steel industry anticipated a significant demand for steel, particularly from the manufacturing, engineering, construction, and infrastructure sectors.The Government has already envisioned this in the National Steel Policy, said Nagendra Nath Sinha, Secretary, Ministry of Steel, which aims to increase per capita consumption of steel to 160kg, while aiming to augment production capacity to 300 MT by 2030.The steel sector, which accounts for approximately 2% of Indian GDP and employs over 2 million people, has requested that the Indian railways provide more waggons for the transportation of raw materials and finished products.The average speed of rail is 20 kilometres, compared to 35 kilometres globally, said Sanjay Rath, executive vice president, Commercial & Logistics Centre of Excellence, JSW Steel. In India, logistics costs are high because the industry is forced to transport approximately 40% of its materials on roads, which is costly.The three-day exhibition features cutting-edge technologies, products, and solutions from leading private-sector companies such as Tata Steel, JSW Steel, Jindal Steel & Power, AM/NS India, Mahindra & Mahindra, Welspun Corp, and L&T.Also ReadMahaRERA extends deadline for completion of 8 projects in MumbaiTN government intends to build 1,186 houses in Kannappar Thidal

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