Policy to create eco-system for ancillary units
The Steel Ministry has a Draft Framework Policy for the development of Steel Clusters to encourage the production of value-added products by MSMEs and raise demand to 255 MTPA with per capita consumption of 160 kg by 2030.
“The policy will focus on creating an eco-system for the development of secondary steel and steel ancillary units,” said Faggan Singh Kulaste, Minister of State for Steel.
The steel cluster will be region-defined with ancillary and secondary steel units around the steel producers to ensure the availability of raw materials.
It will help the units improve their cost competitiveness, logistics efficiency, and production quality. This, in turn, will drive self-sufficiency and generate employment opportunities for the locals around the clusters, he pointed out.
Noting the industry’s concerns, Kulaste assured the government’s support. “There are some issues that the secondary steel sector is facing, like the availability of main raw material iron ore, differential electricity rates in various states, etc.
“I assure you that the ministry is looking into all issues to ensure that contribution of the secondary sector is further strengthened,” he told the webinar on Secondary Iron & Steel Industry: Ecosystem, Opportunities & Challenges”, organized by FICCI and SRTMI on 26 Nov 2020.
He stressed that the Secondary steel sector will play an important role in achieving the 300-million-tonne target of steel capacity by 2030-31, as laid out in the National Steel Policy-2017.
“It is important that raw materials like iron ore, etc., should be made available to the industry to meet the target,” he added.
Meanwhile, the Chhattisgarh state government has taken significant policy initiatives to eliminate procedural hindrances along with creating a conducive environment for entrepreneurship and industrial development, according to Anbalagan P, Secretary, Mineral Resources Department of the state.
“Iron ore is yet to reach its peak capacity and there is still a lot of requirement, in terms of govt policies, in the sector. Further activities will be taken up and we hope to put, at least, 1-2 mines at the composite level by next year,” he said.
More than 40% of steel comes from India’s secondary steel industry, according to V R Sharma, Co-Chair, FICCI Steel Committee.
“With the introduction of scrap recycling policy in the future, the contribution from secondary steel will further rise,” he said.
The biggest reform required in the country is that of ‘One Bharat, One Tariff’, Sharma pointed out. “We need a uniform tariff for the country and urged the government to support the industry.”
Satyam Prakash, Director Rail Movement, Railway Board, has also assured Indian Railways support for the steel industry.
“More than 80% of logistics for the Iron & Steel industry is met through the rail network. The Indian Railways has taken various initiatives to support the steel industry,” he said. The primary raw material for the steel industry is bulk material, the transport for which is always arduous. #manufacturing #steel #investment #projects /fiinews.com
