Govt allocates Rs. 6322 crores to boost steel sector in India

New Delhi: Govt. allocates Rs. 6322 crores to boost steel sector in India

An amount of Rs 6322 crore has been earmarked to produce 25 million tonnes of steel with an aim top generate employment.

For the Production Linked Incentive (PLI) Scheme, the Ministry of Steel has signed 57 Memorandums of Understanding (MoUs) with 27 firms for the production of specialty steel. Over the next five years, an extra capacity of about 25 million tonnes of specialty steel will be produced thanks to the government's allocation of Rs. 6322 crores, which will bolster the steel industry and attract about Rs. 30,000 crores in investment, a statement said.

This action is anticipated to generate a large number of direct and indirect employment possibilities while assisting India in achieving its objective of becoming the third-largest economy in the world by 2030–31.

The Prime Minister Narendra Modi announced a capital expenditure plan worth Rs. 10 lakh crore in the Budget 2023–24, which will generate a sizable amount of demand for the steel sector. India has emerged as the heart of the steel industry's expansion and development due to the global change from the West to the East.

India is anticipated to develop into a manufacturing powerhouse as a consequence, raising the contribution of steel to GDP from 2% to 5%. To realize the goal of the Prime Minister's "Atmanirbhar Bharat," the steel firms participating in the scheme are urged to cooperate with the government in increasing India's output of value-added steel. The government has promised the sector that bottlenecks will be swiftly eliminated and that required permits at the Union and State levels will be completed more quickly. The development of the nation's infrastructure will be greatly aided by the steel industry as India strives to become self-sufficient.

The steel minister also stressed the significance of transitioning from an industry with strict regulations to one with low carbon emissions. Through programs like the Green Hydrogen Mission and Green Steel, carbon balance can be attained. Furthermore, the steel industry needs to advance the cyclical economy because it uses about 25 million tonnes of waste, which presents room for expansion.

The steel minister voiced hope that India would eventually produce a record 125 million tonnes of steel and that demand would increase by 11% to 12%. The role of the government has changed from that of a supervisor to that of a facilitator and partner, working with the steel industry to forge a more promising future for both the industry and the nation at large.

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