Back‘Steel PLI to attract ₹40k cr in investments’
Government has approved PLI scheme for domestic production of speciality steel with an outlay of Rs.6322 crore and its detailed guidelines have been notified in October
PremiumNEW DELHI : The Production Linked Incentive (PLI) Scheme for domestic production of specialty steel will result in capacity addition of 25 million tonne, additional investments of about ₹40,000 crore and employment generation of 5.25 lakh, the steel Ministry said on Tuesday.
Government has approved PLI scheme for domestic production of speciality steel with an outlay of Rs.6322 crore and its detailed guidelines have been notified in October.
Recapping 2021, the steel Ministry said that the cumulative capital expenditure (capex) by state-run steel companies for April-November of the current fiscal stands at ₹5,781.1 crore, up 75.7% over corresponding period last year.
“The CAPEX for April-November, 2021 was 43.5% of the Budget Estimate (BE) target," the ministry said in a statement.
In regards to the timely payment to MSMEs by CPSEs, the Steel Ministry is monitoring them on a weekly basis. During April-November 2021, Steel CPSEs have made a payment of Rs.3358.61 crore to MSMEs which is 64.5% higher than payment of Rs.2041.61 crore made during CPLY.
To promote steel usages in various sectors, Ministry of Steel has been jointly organizing workshops/ Webinars to spread the awareness for benefits of enhanced steel usage in various sectors.
Ministry of Steel has also formed a committee of experts from INSDAG, IITs, Ministry of Road Transport and Highways (MoRTH) and industry experts for development of designs for long span (30m, 35m, and 40m) steel-based Bridges.
“A Joint Working Group (JWG), having members from Ministry of Housing and Urban Affairs (HUA), Ministry of Skill Development, Ministry of Steel, BIS, CPWD, Technical Institutions (IITs) and from Industry, has also been setup for fostering steel usage in Housing and Construction sector to develop standardized design and layouts of housing configurations with Steel structure."
The Committee formed jointly with Ministry of Petroleum and Natural Gas to prepare a roadmap for promoting domestically produced steel in Oil and Gas Sector has submitted the final report in August, 2021.
Procurement of goods and services through GeM by Steel CPSEs has increased significantly over the year. “The value of orders during April-November, 2021 were 4943.14 % higher over the CPLY (corresponding period last year)."
The production performance of Steel sector during the first eight months of the current fiscal has been quite encouraging with cumulative production of crude steel at 76.44 MT (million tonnes) and finished steel at 72.07 MT during April-November, 2021 being higher than that in the similar period during the previous three years.
Export during the current FY (April-November 2021) was 9.53 MT against import of 3.06 MT vis-à-vis export of 10.78 MT and import of 4.75 MT during corresponding period last year (CPLY) and export of 8.36 MT and import of 6.77 MT in 2019-20 (April-November).
"This improved performance was achieved despite the adverse effect of second wave of COVID-19 and concomitant localized lockdowns," the Ministry said.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
