The challenge is to develop the Indian steel sector as more efficient, competitive and to be able capable of producing quality steel including value-added steel, says Minister of State for Steel Faggan Singh Kulaste. He believes the production-linked incentive (PLI) scheme for specialty steel will prove to be a game changer for the industry.
The Union Cabinet chaired by Prime Minister Narendra Modi, on July 22, approved the Rs 6,322 crore PLI scheme to boost production of specialty steel in India, attract fresh investments and create new job opportunities in the sector. The scheme aims to attract an additional investment of about Rs 40,000 crore and lead to a capacity addition of 25 million tonnes, besides generating 5.25 lakh job opportunities.
Kulaste told PTI that the PLI scheme is expected to increase the output of value-added steel and see introduction of new age technologies in the sector. He said other focus areas are availability of raw material at competitive price and to be a world leader in energy efficiency and sustainability.
The minister highlighted that a vibrant domestic steel industry is important for a developing economy as it is a critical input across major sectors such as construction, infrastructure, automotive, capital goods, defence, and rail etc. “Launching of game changer PLI scheme will increase domestic production of value-added steel and herald the introduction of new technologies.”
Kulaste shared that the government, in 2017, approved the National Steel Policy (NSP) to create a globally competitive steel industry in India. Under the NSP 2017, India aims to scale up its annual steel making capacity to 300 million tonnes and per capita steel consumption to 160kgs. “The Domestically Manufactured Iron and Steel Products policy approved earlier, mandates to provide preference to domestically manufactured iron and steel products in government procurement.”
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Furthermore, he said the steel scrap recycling policy has been notified. It aims to secure raw material availability to Induction Furnace/Electric Arc Furnace. This will also reduce imports of scrap which is currently 7 million tonne, out of a total demand of 22-25 million tonnes.