Steel secretary NN Sinha on Thursday said that the proposals for the second edition of production linked incentive (PLI) scheme for specialty steel are ready and once approved is likely to get a good response from the industry.
“Stainless steel sector did not participate as enthusiastically as others in the first PLI. But I hope we will see greater participation of stainless steel manufacturers in the second PLI,” he said inaugurating the India Stainless Steel Expo (ISSE) 2023.
Sinha said that the proposals have been formulated in wide consultation with various industry associations and players. The proposals will be sent to the empowered group of secretaries before it is sent for cabinet’s approval.
Demand for stainless steel is dependent on industrial growth and investment in infrastructure, he said, adding, “This year investment in infrastructure will be in the tune of Rs 10 trillion, which is about 3.3% of the GDP.”
Sinha said there is a growing application of stainless steel in India particularly from railways and metros, which earlier used mild steel. To further increase it, he suggested the industry to establish industry-academia linkages and to educate the users about the benefits, he added.
Indian Stainless Steel Development Association (ISSDA), which is hosting the three-day expo, said consumption of stainless steel in India grew by nearly 10% in the last one year to reach four million tonne.
Speaking on the sidelines on the European Union’s Carbon Border Adjustment Mechanism (CBAM), he said that the ministry is in dialogue with the industry. However, it will have to be taken up by the commerce ministry, which has sent an application to the WTO, he added.
He said that the government is committed to decarbonise the Indian steel sector. The immediate focus is to promote energy efficiency and greater use of renewable energy to cut down emissions.
Use of green hydrogen in steel making, carbon capture and other innovations will also help achieve net zero emissions in the medium term, he said, adding that 13 task forces were constituted with various stakeholders to recommend different levers of decarbonisation of the steel sector.
“This task force is likely to submit their report in about a month’s time. Once we have those reports, we will consider what kind of policy options, incentives, etc are required to persuade them on the path of decarbonisation,” he said.
On the issue of steel dumping by China, Sinha said that the Directorate General of Trade Remedies (DGTR) has sent its recommendations, and that the matter is pending in the Supreme Court. It will be heard on August 23.
“If we have level playing field for the domestic players, demand for stainless steel will grow. China dominates 33% of India’s domestic demand,” said ISSDA president Rajamani Krishnamurti, adding that while global per capita stainless steel consumption is 6 kg, India is at 2.8 kg.