Policy of using domestic steel has saved Rs. 22,400 crore on steel imports, according to Scindia

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Policy of using domestic steel has saved Rs. 22,400 crore on steel imports, according to Scindia

Union Minister of Steel and Civil Aviation, Jyotiraditya Scindia, said on Monday that the elimination of the export tariff on steel goods would usher in a new age of growth for the Indian steel industry, which has expanded its presence abroad.

At the 3rd Indian Steel Association (ISA) convention, the minister acknowledged that it took a long time for the domestic steel industry to establish itself in foreign markets.

Effective November 19, 2022, the government removed the export duty on iron ore lumps and fines with less than 58% Fe content, iron ore pellets, and specified steel products, including pig iron. Import duty exemptions for anthracite/PCI coal, coking coal, coke and semi-coke, and ferronickel were also cut.

Union Minister of Steel and Civil Aviation, Jyotiraditya Scindia
Union Minister of Civil Aviation and Steel, Jyotiraditya M. Scindia addressing at a conference in New Delhi. Pic courtesy: Press Information Bureau

In addition, he stated that the steel industry has emerged not only from a terrible period during the height of COVID-19 but has also become stronger, more resilient, globally oriented, focused, and devoted.

“Our sector has witnessed a huge transformation during the past eight years and has emerged globally from being the 4th largest producer to the 2nd largest producer and the 2nd largest consumer of steel,” said the minister of steel. He further added that Prime Minister Narendra Modi has proposed raising spending on capital infrastructure by roughly Rs 17 lakh crore annually, which would increase demand for steel by about 10 percent annually.

According to the minister, the policy of utilising homegrown steel has saved Rs 22,400 crore on steel imports. He advised the industry to embrace a circular economy strategy that would entail a gradual shift toward steel manufacturing from scrap.

He added that the PLI Scheme (Productivity Linked Incentive) for specialty steel has received 79 applications from 35 firms, resulting in an investment of close to Rs 46,020 crore, an increase in capacity of about 26 million tonnes, and the possibility of the employment of close to 70,000 people. In the next few months, this PLI programme would inject new life into the domestic steel market, he said.

With inputs from Press Information Bureau

Edited by Tanmoy Mitra

Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of the Economic Times – ET Edge Insights, its management, or its members