The exchange of MoUs has been signed by the Ministry of Steel with 27 companies selected out of 57 eligible applications under the PLI scheme.
Present at the occasion were the honourable Union Minister of Civil Aviation and Steel, Jyotiraditya M Scindia, and honourable Union Minister of State for Steel and Rural Development, Faggan Singh Kulaste. The event was also attended by senior officials from the steel industry, Indian Steel Association and its members JSW, Tata Steel, SAIL, AMNS India, JSP, and ministry officials, other associations and various dignitaries.
The PLI scheme has resulted in a commitment of about Rs 30,000 crore investment and 25 MT capacity creation in specialty steel in the next five years. This will also create great opportunities for direct and indirect job creation with an employment generation potential of 55,000 jobs.
Large scale expansion plans and the enthusiasm shown by all companies towards the scheme reposes confidence in the inherent strength of the Indian economy and confidence shown by the steel industry for the growth in the steel sector.
The PLI Scheme for specialty steel has been a great initiative by the Ministry of Steel, Government of India, which not only will make India ‘Atmanirbhar’ in niche steel products but will also be an initiative to make ‘Local for Global’ a reality. Dilip Oommen, President, Indian Steel Association, believes that all the steel players will be part of the PLI Scheme, and with this initiative, the Ministry of Steel and steel industry are partnering with each other to complement and supplement the growth of the industry with commitments from both sides. Around 36 per cent of investment commitments within the manufacturing sector have been made by the industry in the last few years. India is key to the world’s China plus economy approach.Â
The PLI Scheme for specialty steel is bringing in large investments for capacity build up and will make India self-reliant in almost the entire range of steel products. Alok Sahay, Secretary-General, Indian Steel Association points out that even today, a miniscule quantity is required through imports. But with double digit growth of automobiles, healthy growth in capital goods, white and yellow goods and the intermediate sector, a delay in capacity augmentation of speciality steel would have led to import dependence in the near future. Quick trade remedial action, shift from decade old lesser duty rule for ensuring fair trade, especially with countries having excess steel and engineering goods capacity would be key to de-risk the investment and protect the ‘Atmanirbhar Bharat’ vision of India for both segments, which is critical for $5 trillion economy.