Year Ender 2023: This year there has been major development in the infrastructure sector in the country. Many mega projects have been approved or are underway. Meanwhile, Union Minister of Steel Faggan Singh Kulaste has expressed his views on the production of steel in the country in the year 2023 and in 2024. He said the government is working on the Production Linked Incentive (PLI) Scheme 2.0 and is also considering ways to ensure adequate raw material supply for the steel sector in 2024. Strong economic growth will boost demand for steel, although industry players are concerned about rising imports and high raw material prices amid geopolitical uncertainties. There has now been a strong improvement in steel production and consumption after the sector was affected by the Covid-19 global pandemic in 2020-21. According to Steel Ministry data, the cumulative production of crude steel in April-November this year increased by 14.5 percent to 94.01 million tonnes. During the same period, consumption of finished steel increased by 14 percent on annual basis to 86.97 million tonnes. India has set a target of installed steel manufacturing capacity of 300 million tonnes by 2030. At present the country’s capacity is about 161 million tonnes.
India is preparing for PIL 2.0 in steel sector
Talking about the government’s priorities for the steel industry in 2024, Faggan Singh Kulaste said that we are preparing for PLI 2.0 for the steel sector. Discussion on this is going on at various levels. The Minister of State for Steel said that the government will ensure the supply of raw materials for the steel industry and will also focus on promoting the use of scrap. He said that apart from this, efforts will be made to emphasize the use of Artificial Intelligence (AI) and new age technologies among the companies of the industry to boost steel production. Besides, attention will also be given to reducing carbon emissions. The government had approved PLI Scheme 1.0 to boost production of special steel to support additional production of about 25 million tonnes. On steel production and demand, the Minister said that there will be a significant increase in it in 2024 on the basis of infrastructure projects.
90 percent coking coal comes from abroad
Union Minister of Government of India Faggan Singh Kulaste said that all the steel companies are increasing their capacities and the government is helping them in getting approvals related to their projects to ensure ease of doing business. He said that our ministry is in constant touch with the state governments and their officials to help them deal with any problems faced by their projects. The government is working with several countries to explore alternative options for ‘sourcing’ of coking coal. According to the Indian Steel Association (ISA), after recent cases of dumping of steel products in many places including China and Vietnam, increasing imports and high prices of raw materials have become a matter of concern for the industry in the new year. Will remain. India is dependent on imports to meet 90 percent of its coking coal requirement. So far in 2023, imports have been between seven-eight million tonnes.
15 percent growth in steel sector
ISA General Secretary Alok Sahay said that the industry is facing the problem of imports. They expect strict action from the government regarding increase in imports as it is affecting the domestic market. Ranjan Dhar, Chief Marketing Officer, ArcelorMittal Nippon Steel India (AM/NS India) said that economic fluctuations and supply chain disruptions have created many major challenges. Jayant Acharya, Joint Managing Director and Chief Executive Officer (CEO), JSW Steel, said India’s steel sector has recorded an impressive growth of 15 per cent this year, driven by strong economic growth driven by infrastructure, manufacturing, energy transition and allied sectors. Is registered.
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