To generate an investment of 30000 crores and additional capacity creation of 25 Mt specialty steel in the coming five years
The Ministry of Steel has signed 57 MoUs’ with 27 companies for specialty steel under the Production Linked Incentive (PLI) Scheme. An event to exchange of MoUs with companies was organised by the Ministry of Steel today at Vigyan Bhawan, New Delhi. The Union Minister of Steel and Civil Aviation, Shri Jyotiraditya Scindia along with the Minister of State for Steel, Shri Faggan Singh Kulaste gave away the MoUs to the representatives of the companies.
The Minister of Steel and Civil Aviation commended the initiatives of the participating companies in the PLI Scheme for specialty steel. Under the PLI scheme, the Government has approved Rs. 6322 crores to give a new impetus to the Steel sector. Shri Scindia said that 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 5 years. This will also create great opportunities for direct and indirect job creation, besides contributing towards achieving the status of 3rd largest economy by the year 2030-31 as per the resolve and determination of Prime Minister Shri Narendra Modi.
The Union Minister also highlighted that in the Budget 2023-24 the Prime Minister and the Finance Minister Smt. Nirmala Sitharaman has announced an Rs. 10 lakh crore Capital Expenditure Plan that becomes a source of great demand for our industry. The Minister said that there is a structural shift at the international level from West to East that has enabled India to emerge as an epicentre of evolution and growth of the Steel sector. He said that India is set to become a powerhouse of manufacturing which will increase the share of Steel in GDP from 2 to 5%.
Congratulating the stakeholders present at the ceremony Shri Scindia, expressed his hope from the steel companies will 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 the ‘Atmanirbharta’ of the Prime Minister. The Minister assured the industry that necessary clearances at Union and State levels will be done faster and bottlenecks will be removed quickly.
Shri Scindia added that the steel sector is poised to contribute greatly towards strengthening the foundation of national infrastructure building in this endeavour of self-reliance. Talking about carbon emission, the Minister said that keeping the 12% contribution of Carbon emission by the Steel sector, we must move from being a hard-to-abate sector to a low-carbon emission sector and look at carbon neutrality through initiatives such as Green Steel and Green Hydrogen Mission. He added that there is also scope to boost the Circular Economy in the sector as we are using approximately 25 Million ton of scrap in the Steel sector which can be increased in the years to come.
Shri Scindia said that the Government has also transitioned from being a regulator to a facilitator and a 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.
Speaking on the occasion, Union Minister of State for Steel, Shri Faggan Singh Kulaste said that India became the 5th largest economy due to the vision and efforts of the Prime Minister. Government and industry working in close coordination is a good sign for the country and augurs well for growth. PLI scheme is a shining example that available resources need to be channelised with visionary zeal. Referring to National Steel Policy 2017, he mentioned that the PLI scheme was a milestone in achieving the vision set in the policy.
Secretary, Ministry of Steel, Shri Nagendra Nath Sinha, said that research & development, new product development and adoption of global best practices in the steel sector should be given top priority. Production of value-added steel should be seen as a step towards entering the global value chain. The earnestness displayed by the companies in signing MOUs must be matched by them by translating targets into achieving the actual production.
A booklet by the Pellet Manufacturers Association of India was released during the occasion showcasing pellets as a value-added product, the process of manufacturing and the future of the industry in India.
Senior officials from the Steel Ministry, Steel companies, associations and other dignitaries participated in the event.
Disclaimer: this is an official press release by pib.