Industrial Automation Magazine India

57 MoUs signed with 27 companies under the PLI Scheme for speciality steel

Published on : Thursday 27-04-2023

The minister highlighted the countrys rapid ascent in steel production, with a growth of 6% CAGR over the last decade.

Mumbai, April 2023 – Indias steel industry is poised to lead global growth as the nation emerges as an epicentre for the sectors evolution, according to the Honble Minister of Civil Aviation and Steel, Government of India, Shri Jyotiraditya M Scindia. Addressing the Ministry of Steel, Ministry of Commerce, Government of India and FICCIs exhibition and conference – India Steel 2023, the minister highlighted the countrys rapid ascent in steel production, with a growth of 6% CAGR over the last decade and a predicted 11-12% increase in consumption levels in the coming years.

We have already emerged as the second largest steel producer in the world, and our per capita steel consumption has gone up from 57kg to 78kg during the last nine years. This proves our mandate to become a powerhouse of manufacturing and increase the share of Steel in GDP from 2 to 5%, said Scindia.

The minister pointed to four key factors contributing to the sectors growth: collaborative efforts between the government and industry, the strengthening of national infrastructure, a focus on green steel production, and the adoption of new technologies.

Minister Scindia revealed that the government recently signed 57 MoUs with 27 companies under the Production Linked Incentive (PLI) Scheme for speciality steel. This is expected to generate an investment of about Rs 30,000 crore, create an additional capacity of 25 MT of speciality steel within the next five years, and provide over 60,000 job opportunities.

At FICCI India Steel 2023 Sindia also highlighted the governments commitment to producing green steel and reducing the sectors carbon footprint. We are taking appropriate steps to make the steel sector more green and sustainable, he said, stressing the need for recycling and promoting the circular economy within the industry.

Finally, the minister underscored the importance of embracing technology and innovation to fast-track the steel sector. Scindia mentioned the formation of two Advisory Committees, one for Integrated Steel Producers and another for Secondary Steel Producers, to ensure the active participation of stakeholders in decision-making.

I strongly believe that as the next era of growth belongs to India, within India, the next era of growth belongs to the steel industry, said Scindia, urging stakeholders to come together to drive the sectors success and achieve the nations ambitious goals.

In his opening address, Mr Subhrakant Panda, President, FICCI, emphasised the importance of the steel industry in facilitating Indias growth story. Steel is the building block of new India and indeed a vital component in the nations economic development, he stated. However, the Indian steel industry faces several challenges that need to be addressed to achieve its ambitious growth targets, such as decarbonisation and the dependence on the import of coking coal.

Shri Nagendra Nath Sinha, Secretary, Ministry of Steel, emphasised that the steel industry has experienced a growth rate of 12.7 per cent in the past year alone, with steel consumption rising from 105 million tons in 2021-22 to 119 million tons in 2022-23. Further, while alluding to the domestic benefits of a thriving steel industry, Secretary Sinha emphasised the potential for international cooperation. He pointed out that Indias steel sector could play a crucial role in addressing other countries development and infrastructure needs while working towards a more integrated global economy.

Ms Soma Mondal, Chair, FICCI Steel Committee and Chairman, Steel Authority of India, Shri Hemant Sharma, Principal Secretary, Industries Department, Government of Odisha, and Ms Ruchika Chaudhry Govil, Additional Secretary, Ministry of Steel, Government of India, among others, also spoke on occasion.