India Steel 2023: PLI scheme to generate investment of Rs 30,000 crore and create 60,000+ jobs in specialty steel sector

• Minister of Steel and Civil Aviation, Shri Jyotiraditya Scindia, has suggested the possibility of mandating industries to allocate a portion of their production towards the creation of Green Steel in the future
• Talking at India Steel 2023 in Mumbai through video message, Shri Scindia said the Ministry is in the process of aligning up policies with the Gati Shakti Master Plan to boost the demand of steel in various sectors

Mumbai, April 19, 2023: India Steel 2023 is a three-day conference and exhibition organized by the Union Ministry of Steel, the Department of Commerce, the Union Ministry of Commerce and Industry, and the industry chamber FICCI. Shri Jyotiraditya M. Scindia, Hon’ble Minister of Civil Aviation and Steel, said, that the ministry has signed 57 MoUs with 27 companies for specialty steel under the PLI scheme, which is expected to generate investment of about Rs 30,000 crore and create additional capacity of about 25 mt of specialty steel in next five years; this will also as a multiplier create 60,000 plus jobs for our Amrit Pidi and contribute towards achieving the goal of becoming the third largest economy by 2030-31.

Addressing the event gathering through video message, Shri Scindia said, “We have emerged as the second largest steel producer in the world with per capita steel consumption has gone up from 57 kilos to 78 kilos during the last nine years. This growth is having manifold results — collaborative  efforts of industry and government wherein government plays role of facilitator and industry drives this engine of growth. The Steel Ministry is in the process of aligning up policies with the Gati Shakti Master Plan which will complement the Rs 100 lakh crore investment plan for infrastructure development over the next five years; this will boost the demand of steel in various sectors thereby enhancing steel usage.

Taking the attendees through various technologies being developed such as Hydrogen-based Steel making as demonstrated by Hybrid plant in Sweden and Hisarnar Technology by Tata Steel Europe coupled with CCUS that holds huge promise, Mr Scindia said, “The commercialization of these technologies might take some time. During the interim period, continuous improvement shall be made in the existing technologies to yield efficiency and reduce carbon footprint. In the near future, the government of the day may contemplate looking at putting in place processes for steel producers to dedicate a percentage of their production to make Green Steel  ensuring greater usage of the same in government projects.”

Speaking on the occasion, Shri Faggan Singh Kulaste, Hon’ble Minister of State in the Ministry of Steel and Rural Development, said, “In 2013-14, where steel production capacity was about 100 million tonnes and crude steel production was about 82 million tonnes, in 2022-23 the steel production capacity was 154 million tonnes and crude steel production was 125 million tonnes. This historic growth has been possible due to the business friendly policy, reforms and transparency in the steel sector of our Government under the guidance of Honorable Prime Minister Shri Narendra Modi. “

Shri Kulaste further said, “Our government has implemented the Vehicle Scrappage Policy for circular economy, so that the steel industry can get maximum scrap. This policy will also be helpful in the production of green steel. If this would have been implemented earlier then we would have reached different levels. Apart from this, our government’s emphasis has always been on Green Hydrogen Mission and increasing the capacity of Shaurya Energy to promote green steel production. We should try to think of what else can be done to promote these initiatives further. “

He talked about three important points for discussions in the steel industry such as usage of low grade iron ore, Bridging the wide gap in steel consumption in rural and urban areas, and application of technology. When we will deliberate on usage of low grade iron ore, it will create more jobs in the country. There is a significant gap in steel consumption between rural and urban areas, with per capita consumption in rural areas at one-third of the national average; the per capita steel consumption in rural areas is 24 kg while in urban areas the per capita steel consumption is 234 kg. We have to promote the consumption of steel in rural and fill the gap and bring at national level so that we can reach the targets of National Steel Policy. We also have to use the technology to the maximum to become competent and be able to provide more jobs.”

It is anticipated that there would be a significant demand for steel, particularly from the manufacturing, engineering, construction and infrastructure sectors, to keep up with the country’s rapid modernization, economic growth and nation development.  Sh. Nagendra Nath Sinha, Secretary, Ministry of Steel, said, “The Government has already envisioned this in the National Steel Policy which aims to increase per capita consumption of steel to 160kg, while aiming to augment production capacity to 300 MT by 2030. We have now set our sights on the targets for 2047, marking our journey in the Amrit Kaal of Independence. Ample opportunities are being created through initiatives undertaken by the Government such as Ease of Doing Business, Market Access Initiatives (MAI), Decarbonization Targets etc. which shall help the domestic industry in capacity creation, providing level playing field and creating conducive business environment to attract investments and promote exports.”

The sector contributes approximately 2% to the Indian GDP and provide employment to over 2 million people. “We are still import-dependent for approximately 85% of our coking coal requirement. While in the last year, we imported more than 55 MT of coking coal, and the total coking coal requirement for the steel industry is expected to reach 160-180 MT by 2030. Therefore, we need to take urgent steps for enhancing coking coal production by increasing the capacities of existing mines as well as the operationalization of new mines for coking coal production,” said Shri Subhrakant Panda, President, FICCI, and Managing Director, Indian Metal & Ferro Alloys Ltd.

The conference and exhibition will provide a unique platform for attendees to engage with industry leaders, gain insights into future growth prospects, and explore opportunities for collaboration in the rapidly evolving Indian steel landscape. The exhibition showcases advanced technologies, products, and solutions from leading private sector organizations, including Tata Steel, JSW Steel, Jindal Steel & Power, AM/NS India, Mahindra & Mahindra, Welspun Corp, and L&T, among others.