- India signs 57 MoUs with 27 companies for specialty steel under PLI Scheme.
- The MOUs signing showcased the government’s commitment to creating a conducive environment for industry growth and development.
The Ministry of Steel signed 57 Memorandum of Understandings (MoUs) with 27 companies for specialty steel under the Production Linked Incentive (PLI) Scheme. The exchange of MoUs was organised at Vigyan Bhawan in New Delhi, and representatives of the companies received the MoUs from the Union Minister of Steel and Civil Aviation, Jyotiraditya Scindia, and Minister of State for Steel, Faggan Singh Kulaste.
PLI Scheme expected to boost the steel sector
Under the PLI Scheme, the Indian Government has approved Rs. 6322 crores to boost the steel sector. The PLI Scheme is expected to generate an investment of about Rs. 30,000 Crores and additional capacity creation of about 25 Million Tonnes of specialty steel in the next five years. This scheme is expected to create great opportunities for direct and indirect job creation, contributing to achieving the status of the 3rd largest economy by 2030-31, as per the Prime Minister Narendra Modi’s vision. With the government and industry working in close coordination, there is a good sign for the country’s growth, and it is expected to achieve record production of 125 million tonnes and 11% to 12% growth in consumption levels.
Rs. 10 lakh Cr Capital Expenditure Plan in the Budget 2023-24
The Prime Minister and the finance minister Nirmala Sitharaman have announced Rs. 10 lakh crore Capital Expenditure Plan in the Budget 2023-24, which is expected to increase demand for India’s steel industry. The Union Minister highlighted that there is a structural shift at the international level from the West to the East, which has enabled India to emerge as an epicentre of evolution and growth of the steel sector. The Minister expects India to become a powerhouse of manufacturing, which will increase the share of steel in GDP from 2 to 5%.
Collaboration needed to increase value-added steel production
The Union Minister commended the stakeholders’ initiatives in the PLI Scheme for specialty steel and expressed hope that the steel companies would take efforts in tandem with the Government of India to increase the production of value-added steel in India. Participants in the scheme should use this opportunity to fulfil the vision of ‘Atmanirbharta’ of the Prime Minister. The Minister assured the industry that necessary clearances at Union and State levels would be done faster, and bottlenecks would be removed quickly.
Moving towards a low carbon emission sector
The Minister highlighted the contribution of the steel sector to carbon emissions and emphasized the need to move from being a hard-to-abate sector to a low carbon emission sector. The Minister mentioned initiatives such as Green Steel and Green Hydrogen Mission, which could lead to carbon neutrality. He also mentioned that the circular economy in the sector could be boosted as approximately 25 Million tons of scrap are used in the Steel sector, which could be increased in the years to come.
India transitions to facilitator and collaborator
The Minister added that the Government has transitioned from being a regulator to a facilitator and collaborator and expressed optimism that India is on course to achieve record production of 125 million tonnes and 11% to 12% growth in consumption levels.
Importance of R&D and new product development
The Secretary, Ministry of Steel, Nagendra Nath Sinha, emphasized the importance of research & development, new product development, and adoption of global best practices in the steel sector. The production of value-added steel should be seen as a step towards entering the global value chain. The Secretary encouraged companies to match their targets with actual production.
Release of a booklet by Pellet Manufacturers Association of India
The Pellet Manufacturers Association of India released a booklet showcasing pellets as a value-added product, the process of manufacturing, and the future of the industry in India.
The exchange of MoUs
The signing of MoUs’ with 27 companies under the Production Linked Incentive (PLI) Scheme is a significant development for the Indian steel industry. The PLI scheme aims to increase the production of specialty steel in India and boost the country’s manufacturing capabilities. With an approved investment of Rs. 6322 crores, the scheme is expected to generate an investment of about Rs. 30,000 Crores and additional capacity creation of about 25 Million Tonnes of specialty steel in the next 5 years.
The Union Minister of Steel and Civil Aviation, Jyotiraditya Scindia, highlighted the importance of this scheme in achieving the vision of ‘Atmanirbharta’ or self-reliance, as envisioned by the Prime Minister Narendra Modi. He emphasized that the steel sector has great potential to contribute towards strengthening the foundation of national infrastructure building and increasing the share of Steel in GDP from 2 to 5%.
Scindia also spoke about the need to shift from being a hard to abate sector to a low carbon emission sector. He suggested initiatives such as Green Steel and Green Hydrogen Mission to achieve carbon neutrality. The Minister also highlighted the importance of boosting the Circular Economy in the sector, using approximately 25 Million ton scrap in Steel sector that can be increased in the years to come.
The Union Minister of State for Steel, Faggan Singh Kulaste, expressed his optimism about the growth of the steel industry in India. He mentioned that the PLI scheme is a milestone in achieving the vision set in the National Steel Policy 2017. The scheme is a shining example of how available resources need to be channelized with visionary zeal.
The Secretary, Ministry of Steel, Nagendra Nath Sinha, emphasized the need for research & development, new product development, and adoption of global best practices in the steel sector. He also stressed the importance of translating targets into achieving actual production to ensure that the earnestness displayed by the companies in signing MOUs’ is matched by actual production.
(India CSR)
