The Union government’s plan for 300 million tonnes of steel making capacity by 2030-31 in the country is an opportunity for foreign plant and equipment suppliers, noted the government.
An estimated Rs 25 billion in such equipment would be needed. There would be the associated need for spares, for which there is an estimate of $500 million annually in import. Union steel minister Birender Singh noted the domestic sector was growing at 6.7 per cent annually. India’s annual per capital consumption of steel is 61 kg; the world average is 208 kg.
According to the National Steel Policy, issue last year, the Indian figure would rise to 160 kg by 2030-31. It envisaged Rs 10 trillion in investment for the planned 300 mt capacity by 2030-31.
The minister said effort would be made to ensure India becomes a global manufacturing hub. The government will provide fiscal and non-fiscal incentives for domestic manufacturers. Incidentally, to also reduce the dependence of steel makers from sourcing plant making equipment from abroad, the steel ministry is organising a conclave to identify the industry’s needs and what could be done to promote indigenous capacity. The government says it intends to encourage foreign investors and equipment suppliers to set up or expand their manufacturing base in India, for serving the market here and also abroad. India’s total export of finished steel rose 16.7 per cent to 9.6 mt in 2017-18, from the year before.