Bhubaneswar,October 23: Leading Capital Goods (CG) producers from the across the globe inked 38 MoUs with leading Indian steel companies envisaging reduction in imports of CGs meant for the steel sector worth Rs 39,400 crore by promoting manufacturing of capital goods in the country.
The MoUs were signed at a Conclave in Bhubaneswar which was organised by Ministry of Steel, Government of India in association with Confederation of Indian Industry (CII) and MECON.
The National Steel Policy – 2017 envisages creation of 300 million tonnes (MT) of steel capacity in the country by 2030-31 as against existing 130 MT. The estimated import of plant and equipment, for reaching 300 MT capacity, will be around USD 25 billion.
Further, for meeting the spares requirement, it is estimated that at 300 MT capacity level, India will have to spend about USD 500 million annually for import of proprietary and other spares.
In his keynote address, Chief Minister Naveen Patnaik said, “the MoUs inked today for the CG sector has the potential of transforming India into a world-class manufacturing hub.”
“Odisha has a rich mineral base and produces 14% of the country’s total mineral production in the country. Odisha is focusing on attracting major investments in the metal sector. Our state has ample potential to become a major steel hub,” the CM added.
In his welcome address, Steel Minister Chaudhary Birender Singh said that in order to ensure that the MOUs which are being signed today culminate into manufacturing of capital goods, a purchase preference policy to cover all purchases of steel products, including capital goods is being worked upon by the Steel Ministry.
It will ensure that products/product categories which do not get covered by the Domestically Manufactured Iron &Steel Policy will get covered by the proposed policy on the line which has been prescribed by the DIPP. These MoUs are a win-win for both.
“The foreign manufacturers who will enter into a JV with an Indian firm can get advantage of purchase preference. Indian manufacturers will benefit from foreign investments and technology and also get to fulfill the eligibility condition of experience,” the minister said.
In his address, Minister for Heavy Industries and Public Enterprises, Anant G Geete, said the Indian manufacturing companies have the capability to manufacture all nonproprietary items and the Government is committed to facilitating technological tie-ups between domestic CG producers and their foreign counterparts for capacity building.
He recalled that his ministry has helped in building a machine tools hub in Karnataka and suggested that his ministry proposes to do the same in Odisha and sought the state government’s cooperation in this regard.
Petroleum & Natural Gas Minister Dharmendra Pradhan said that Odisha has mega steel projects besides small and medium steel mills which also contribute significantly to the state’s overall steel production. The Government believes that Odisha has the potential to produce nearly 100 Million Tonne of the total 300 MT output targeted by 2030-31 as the state is home to sizeable mineral resource base.
Adam Szewczyk of the World Steel Association said India steel demand is set to develop in the short and medium term due to favourable macro-economic conditions and ambitious reform agenda.
It will be very soon the second biggest market in the world. The low steel use per capita in India and structure of steel used with dominating construction typical for developing nations leave a lot of opportunities for development.
Prasanta Patnaik