India Soars to Rank 2nd in Crude Steel Production: Union Minister Shri Jyotiraditya M. Scindia
Union Minister of Steel and Civil Aviation, Sh. Jyotiraditya M. Scindia, addressed a press conference at Rajiv Gandhi Bhawan, New Delhi, focusing on the theme of the government's "Seva, Sushasan, and Gareeb Kalyan" initiative in the Steel sector. The Minister highlighted the significance of the Steel industry in the country's progress and development, stating that India now stands as the world's second-largest producer of crude steel, surpassing Japan in 2018.
Discussing the achievements of the government over the past 9 years, Minister Scindia noted that India has become a net exporter of steel, with 6.72 million metric tons (MT) of finished steel exported and 6.02 MT imported in 2022-23. This is a substantial shift from being a net steel importer in 2014-15, with 9.32 MT imports and 5.59 MT exports. Additionally, Steel CPSEs such as SAIL, NMDC, MOIL, KIOCL, MSTC, and MECON have utilized ₹90,273.88 crores of their own resources for capital expenditure (CAPEX) and paid the Government of India a dividend of ₹21,204.18 crores. He also mentioned the progress made by the steel sector from pre-2014-15 to 2022-23 which can be seen in the table mentioned below:
The Minister placed special emphasis on the Steel Scrap Recycling Policy, which aims to promote the scientific processing and recycling of ferrous scrap. He mentioned the opening of six Vehicle Scrapping Centres across various cities, with three more scheduled to commence operations soon. The utilization of end-of-life vehicles as raw material for steel production is a key objective, and efforts are underway to engage state governments and the private sector in this initiative.
Highlighting the National Steel Policy 2017 (NSP 2017), Minister Scindia outlined the targets set to propel the steel sector's growth. By 2030-31, India aims to achieve a total crude steel capacity of 300 million metric tons per annum (MTPA) and a total crude steel demand / production of 255 MTPA. The operational capacity of SAIL is also projected to increase from 19.51 MTPA to approximately 35.65 MTPA by 2030-31. The Minister also emphasized the positive impact of the Policy for providing preference to Domestically Manufactured Iron and Steel Products (DMI & SP Policy) in government procurement, resulting in import substitution of around ₹34,800 crores.
Addressing the importance of the Productivity Linked Incentive Scheme (PLI), Minister Scindia announced that 57 memorandums of understanding (MoUs) involving 27 companies have been signed under the scheme. This is expected to attract an investment commitment of around ₹30,000 crores, leading to a downstream capacity addition of 24.7 million metric tons and the potential generation of 55,000 jobs.
In line with promoting "Brand India" steel, the Ministry of Steel has initiated the Made in India branding of steel produced within the country. Major steel producers have already joined this effort. The Ministry has also identified 22 critical infrastructure gaps and collaborated with the Ministry of Road Transport and Highways, Ministry of Railways, and Ministry of Ports, Shipping, and Waterways to address these gaps through the PM Gati Shakti National Master Plan Portal. Regarding decarbonization in the steel sector, the Minister highlighted the formation of 13 task forces to identify action points for green steel production. Continuous discussions are being held with stakeholders from the steel industry and other ministries and departments, including the Ministry of Environment, Forests & Climate Change, Railways, and Power.
The press conference provided valuable insights into the government's initiatives and achievements in the Steel sector, highlighting the transformative steps being taken to ensure sustainable growth and development.