Steel consumption to be around 132 million tonnes to 135 million tonnes in FY 2024: Faggan Singh Kulaste

Speaking on the occasion, MoS (Steel) Faggan Singh Kulaste said that the demand for steel in India continues to be robust as compared to other countries.

A three-day conference and exhibition on the steel industry named 'India Steel 2023' was inaugurated by Union Minister of State for Steel and Rural Development Faggan Singh Kulaste in Mumbai today. The Union Ministry of Steel, in association with the Department of Commerce, Union Ministry of Commerce and Industry and industry chamber FICCI has organized the event at the Mumbai Exhibition Centre in Goregaon, Mumbai, with an aim to bring together industry leaders, policymakers, and experts to discuss the latest developments, challenges, and opportunities in the steel industry.

In a video message, Union Minister for Civil Aviation and Steel Jyotiraditya M. Scindia stated, "This Conference could not have taken place at a better time. Looking at the structural shift from west to east, India has now emerged as an epicentre for evolution and growth of the steel sector. Under the leadership of Prime Minister Narendra Modi, India has taken significant steps towards becoming self-reliant in manufacturing activities, including steel industry. He said that in the last decade, steel production in India has steadily grown by 6%. Global steel experts led by the world steel association have predicted that India is going to be the epicentre of growth of global steel growth, stated the Union Minister. India's finished steel production has increased by over 6%, whereas globally steel production declined by 4.2% in calendar year 2022, he added. 

“We have already emerged as the second largest steel producer in the world and our per capita steel production has gone up from 57 kilos to 78 kilos total during the last 9 years 70 years to 78 kilos during the last 9 years”. This proves our mandate to become a powerhouse of manufacturing, he added.  The Steel Minister stated that this growth is having manifold results like collaborative efforts of the industry and government wherein, the government plays the role of a facilitator and the industry drives this engine of growth. He stated that the Steel Ministry has recently signed 57 MoUs with 27 companies for speciality steel under PLI scheme. The PLI scheme, which is expected to generate an investment of about Rs 30,000 crores and create additional capacity of about 25 million tonnes of speciality steel in the next five years, will act as a multiplier and create 60,000+ jobs in the Amrit Kaal and contribute towards achieving the goal of becoming the third largest economy of the world by the year 2030-31.

 

Union Steel Minister Jyotiraditya M. Scindia also stated that the Steel Ministry is in the process of aligning policies with the Gati Shakti Master Plan, which will complement the hundred lakh crore investments for infrastructure development. Increased indigenous defence procurement and a growing manufacturing sector in the country is expected to contribute to steel demand, stated the Steel Minister. "We are also in constant touch with the other line Ministries and departments for enhancing steel usage in the sectors governed by several Ministries", he added. 

The Union Minister further stated that Steel Ministry is also taking appropriate steps to make the steel sector, more green and sustainable in line with the Prime Minister's emphasis on producing green Steel. The government believes in zero waste, zero harm policy and gradual decarbonization is essential for the steel sector, he said.  He further said that steel ministry is also open to adapting to new ideas and Innovations and new technologies to fast-track the steel sector.

 

Speaking on the occasion, MoS (Steel) Faggan Singh Kulaste said that the demand for steel in India continues to be robust as compared to other countries. India's Steel consumption has grown over 11% to 119 million tonnes in FY 2023 from 105 million tonnes in FY 2022. "We may expect the growth momentum to continue with the emphasis of developing the infrastructure of the country by Prime Minster, this is reasonable to expect the steel consumption including exports will  be around 132 million tonnes to 135 million tonnes in FY 2024", he said. MoS (Steel) pointed out that achieving the goals of the National Steel Policy 2017 has mandated that steel consumption in rural areas to be enhanced for improving steel intensity of the country. The MoS further said, in order to promote the circular economy, Central Government has implemented the Steel Scrapping policy and Vehicle Scrappage Policy for enhancing the supply of steel scrap to the  industry. The scrappage policy will also accelerate and facilitate the production of green steel, he stated. He listed out three points which are important topics of discussion in the conference, which are: i)Utilization of low-grade iron ore, ii) Reducing the consumption gap between urban and rural areas, and iii) Implementation of technology.

The Secretary, Ministry of Steel, Nagendra Nath Sinha, in his theme address said The steel-makers of the country have a huge role to play in the Amrit Kaal to meet the aspirations of the people for economic growth and social progress. The Union Government has prepared its budget working on all the levers of growth and in this the steel makers have a huge role, he added. He invited suggestions on the second phase of the PLI scheme from steel industry stakeholders, for fulfilling the needs of the industry and economy.

The dignitaries present on the occasion included Mr Subhrakant Panda (President, FICCI) and Ms Soma Mondal (Chairperson, SAIL and Chair, FICCI Steel Committee) and senior government officials among others.

(With Inputs from PIB)