Mindset shift in steel sector
The government is considering an increase in the budgetary allocation for research and development to boost the steel sector, Steel Minister Chaudhary Birender Singh has told the business community.
Speaking at the 4th edition of India Steel 2019 organized by the Ministry of Steel on 22 Jan 2019, Singh said: “Growth trend in steel consumption in India will continue, due to strong manufacturing sector, diversified demand demographics, accelerated expenditure on infrastructure, anticipated increase in GDP and strong focus on Make in India.”
A budget of around Rs.6 lakh crores was allocated for infrastructure development in the current financial year. So, based on these enabling factors and with huge potential yet to be tapped, the per capita consumption can easily be increased from the current levels, he pointed out.
“I am happy to share that we have been able to bring a shift in mindset and the work culture in these areas, as demonstrated by actual performance,” Singh said at the conference organized by his ministry jointly with the Federation of Indian Chambers of Commerce & Industry (FICCI).
Sounding bullish on the steel sector, Singh added: “We are likely to leave behind US in terms of steel consumption this year.”
Steel Ministry Secretary Binoy Kumar emphasized, “The National Steel Policy 2017 along with the Policy for Preference to Domestically Manufactured Iron & Steel Products (DMI&SP), is not just aimed at providing a boost to the steel industry in the country but also acts as a facilitator to the Make in India initiative.”
These policies have resulted in savings of more than Rs.8,000 crore till date.
Underlining the importance of not showing any disadvantage to the sector, he added that they are also reviewing the DMI&SP policy and trying to find convergence between DMI&SP policy and Public Procurement Order 2017 of DIPP.
“Under the ambit of the policy, 16 more steel products were brought under Quality Control Order, which now covers a total of 53 products. The endeavor is to bring more products under the Quality Control Order in an effort towards prohibiting production, import and distribution of substandard products,” Kumar assured.
He further said that to strengthen the sector, the ministry is working through Steel Research and Technology Mission of India (SRTMI) and exploring technology transfer agreements for production of products like electrical and automotive steel domestically.
“Ministry of Steel is also trying to increase the budgetary allocation for facilitating R&D,” said Kumar
FICCI President Sandip Somany said the steel sector integration with user industries makes it a strategic sector for the government as well as the economy.
India has set a target to produce 300 million tonnes a year of steel by 2030.
“There is an increased focus in the industry and government for 2030 in terms of raw material security, demand stimulation of achieving energy efficiency in the industry; leveraging our steel potential in building a New India,” noted Somany.
Hence, the theme of the event is “Balancing Steel Demand and Supply Dynamics Up Till 2030: Building a New India”
The 4th edition of India Steel 2019 is focused on highlighting the current trends, developments, challenges and prospects of the steel industry. fiinews.com
