More initiatives on anvil to boost steel sector in 2023

NEW DELHI, DEC 26: With increasing steel production in the country, the focus in 2023 will be on boosting raw material supplies and producing more special grade steel, according to Union minister Faggan Singh Kulaste.

India produced 113.43 million tonne of crude steel in January-November 2022, which is 10 per cent higher compared to the year-ago period. The government aims to double the country’s annual crude steel making capacity to 300 MT from 150 MT at present.

 In an interview to PTI, Kulaste, the Minister of State for Steel, said more initiatives for the sector will be taken in 2023.

 Last year, the government introduced the Production Linked Incentive (PLI) scheme for specialty steel to enhance the production of the high-end alloy. Special grade steel is used in various sectors, including power, shipping, railways and auto. The demand for this steel is being met through imports.

 “Our focus will also be on taking measures to support industry besides finding new markets as the production of steel continues to grow in the country,” he said.

 Ensuring the raw material security for steel production will be a key focus area for the government as the country is mostly dependent on import of raw materials like coking coal.

 While other minerals are available in sufficient amounts, Kulaste said India is dependent on imports for coking coal.

 The country imported 57 MT of coking coal in FY22 to produce 120 MT crude steel.

 New reserves of coking coal are being identified. The country has around 34 billion tonne of coking coal, of which about 18 billion tonne have already been proven, the minister said.

 “The development of technology for mining and washing can make the country self-reliant besides ushering in huge employment opportunities and accelerating the process of development of urban, semi-urban and rural areas,” Kulaste said.

 In 2022, the government took various measures to support the steel industry by removing the export duty on steel items and extending export benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme to products of iron and steel for a specified period. These measures will help the domestic steel industry increase its share in the global markets, Kulaste said.

 Indian Steel Association (ISA) Secretary General Alok Sahay said exports of steel, which fell around 55 per cent in April-October 2022 compared to the year-ago period, is expected to resume at a slower pace initially.

-PTI