Indian Economy News

Ministry of Steel signs 57 MoUs’ with 27 companies under PLI schemes for specialty Steel

Under the Production Linked Incentive(PLI) Scheme, the Ministry of Steel has signed 57 Memorandum of Understanding (MoUs) for specialty steel with 27 companies. The Ministry of Steel had an event in Vigyan Bhavan, New Delhi to exchange MoUs with companies. The agreements were presented to the company representatives by Union Minister of Steel and Civil Aviation Mr. Jyotiraditya Scindia and Minister of State for Steel Mr. Faggan Singh Kulaste. The Minister of Steel and Civil Aviation praised the PLI Program for specialty steel participants' initiatives.

The government has approved US$ 766.38 million (Rs. 6,322 crores) under the PLI scheme to revitalise the steel industry. India is poised to become a manufacturing powerhouse with the increasing contribution of steel in India's GDP by 2-5%.

According to Mr. Scindia, the PLI programme is anticipated to result in an investment of approximately US$ 3.63 billion (Rs. 30,000 Crores) and an increase in capacity of approximately 25 Million Tonnes of speciality steel over the course of the following five years. In addition to supporting the country to become the third largest economy by the years 2030–31, this will also offer excellent potential for the development of direct and indirect jobs. He also stated that in order to maintain the 12% contribution of carbon emissions from the steel industry, we must transition from being a sector with high carbon emissions to one with low emissions and consider achieving carbon neutrality through programmes like Green Steel and the Green Hydrogen Mission. He also stated that there is room to expand the Circular Economy in the sector, as we currently use around 25 million plastic bottles.

According to Mr. Scindia, the government has changed from being a regulator to a facilitator and a collaborator.

The Pellet Manufacturers Association of India released a pamphlet at the event that described pellets as a value-added product, the manufacturing process, and the prospects of the industry in India.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.