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PLI To Mobilise Rs 10,000 Cr Investments In Specialty Steel Production By Next Year

Updated: Mar 11, 2024 06:02:32pm

PLI To Mobilise Rs 10,000 Cr Investments In Specialty Steel Production By Next Year

New Delhi, Mar 11 (KNN) Nagendra Nath Singh, Union Steel Secretary, has projected investments totalling Rs 10,000 crore in specialty steel-making by PLI (Production Linked Incentive) short-listed companies in the coming fiscal year.

Notably, five units have commenced production, with nine more expected to begin operations by the end of the March quarter, reported BL.

This prediction follows an expected investment of nearly Rs 16,000 crore by the end of FY24. Singh reported that selected companies have already invested approximately Rs 12,900 crore, with an additional Rs 3,000 crore expected by the end of FY24.

Regarding the adoption of green steel initiatives, Singh highlighted the recent launch of the first pilot project for the use of green hydrogen in stainless steel production, led by Union Steel Minister Jyotiraditya Scindia on March 4.

Tata Steel has already conducted trials, with other companies also exploring similar initiatives. The National Mission on Green Hydrogen is supporting pilot projects in the steel sector with a budget of approximately Rs 500 crore until FY30.

Addressing concerns surrounding the Carbon Border Adjustment Mechanism (CBAM), particularly its potential impact on Indian steel exports to Europe, Singh stated that consultations are ongoing with the Commerce Ministry. Discussions are being held with the European Union and other relevant agencies to ensure mutually beneficial outcomes.

Singh also touched upon the ongoing reviews of Free Trade Agreements (FTAs), emphasising the importance of product-specific rules of origin to prevent trade circumvention.

On the issue of increasing steel imports, particularly fr0m China, Singh noted that while the steel sector is deregulated, the government is closely monitoring incoming shipments for their impact on the domestic market. He emphasised that policy interventions are contingent on stakeholder consultations and are typically long-term in nature.

Despite these challenges, Singh expressed optimism regarding India's steel consumption and demand, citing sustained economic growth and increased capital expenditure as driving factors.

He highlighted the growth in steel production and consumption over the past few years and expressed confidence in achieving targeted per capita steel consumption levels by 2030-31.

Under the PLI scheme, 57 Memorandums of Understanding (MoUs) have been executed, committing to an investment of Rs 29,500 crore with an additional capacity addition of 25 million tonnes by FY28.

(KNN Bureau)


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