Demand comes from energy projects
Steel Minister Dharmendra Pradhan has stressed on enhancing domestic steel usage in oil and gas projects and reducing import dependence.
Addressing a Webinar on ‘Atmanirbhar Bharat: Fostering Domestic Steel Usage in Oil & Gas Sector’ in Delhi on 16 June 2020, he said that Steel and Oil & gas sectors have close linkage, and it is time to take it to a new pedestal.
Pradhan said that Aatmanirbhar Bharat is a strong Bharat with a robust manufacturing sector, a self-reliant yet globally integrated economy.
Having strong linkage with the sectors like construction, oil & gas, automobiles, machinery among others, the Indian steel sector has got a fundamental role to play in realizing India’s dream of becoming Aatmanirbhar Bharat.
He said that the Indian steel sector can strive to be a major player at the global stage, only after it fulfills all the domestic requirements.
“Domestic players should rise to the occasion so that cost does not escalate in our efforts to promote localization of supply chain,”
The Minister said the oil&gas sector has seen a tremendous transformation over the last six years on the back of pro-investment policies.
The sector is undergoing tremendous growth, be it in refineries, pipelines, gas terminals, storage capacity, gas cylinders, retail outlets, and all these require a large amount of steel.
Oil and gas sector is one of the largest end-users of steel pipes and tubes, with the pipeline being the major mode of transport for petroleum, oil and lubricant products.
Expansion of city gas distribution network to cover 70% of the population, refining capacity augmentation, plan to set up 10,000 CNG stations, E&P activities, all will drive steel demand in the sector.
He urged all the organizations in the oil and gas to procure domestic steel, pointing out that the domestic steel manufacturers have all the capabilities to cater to the future requirements for steel in the sector.
Meeting steel demand domestically and reducing import dependence will significantly enhance employment opportunities in the sector and would also give a boost to growth of MSMEs in the steel sector and lead them to produce more value-added products.
The webinar was organized by the Ministry of Steel in partnership with FICCI. fiinews.com
