India’s steel industry to ensure value addition to boost exports; here’s what govt has in store

By: |
Published: December 23, 2019 6:35:18 PM

The steel industry has been asked to ensure more value addition to become more competitive.

steel output, steel industry india, steel output india, crude steel, india crude steel output, raw iron, dharmendra pradhan, electric arc furnaceThe steel production in India majorly lags in the availability of raw materials.

To reduce the import of steel in India and become a net exporting nation, the government has urged the industry to develop new technologies that would make the country’s steel more exportable. The steel industry has been asked to ensure more value addition to become more competitive, according to a statement by the Ministry of Steel. “Almost half of the country’s steel production is done by the secondary steel sector. We are making our policy framework more inclusive. Our Government has made raw material even more accessible to the secondary steel sector, which the industry must reciprocate by producing more value-added products,” said Dharmendra Pradhan, Minister of Steel.

The steel production in India majorly lags in the availability of raw materials. Either good quality raw material is imported or an inferior quality raw material is beneficiated in the plant. Even fuel is costly and scarce. However, the minister today said that the steel industry needs more affordable energy and they are exploring new sources of energy to make India a gas-based economy.

Also Read: Steel prices shoot up and FM Sitharaman’s housing push not the only reason; here are other factors

He mentioned that there is 600 million MT of biomass in the country and a big network through Urja Ganga Yojana is being laid down and with the use of technology, the government is also planning to facilitate setting up of 5000 plants for bioenergy generation.

MSMEs play a significant role in the steel industry as the secondary and tertiary plants are in major numbers that only provide some of the value addition like cold-rolling, hot-rolling, color-coating, etc. Drawing attention towards the role of these MSMEs, the minister stated that large industries alone cannot cater to the huge population in terms of job creation. “Our MSMEs play an important role in large scale employment creation. The nation cannot prosper without wealth creators. Guided by the mantra of ‘Minimum Government, Maximum Governance’, we are committed to facilitating the growth of wealth creators,” Dharmendra Pradhan added. 

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1MSMEs must protect their ideas; investment in IP protection is asset not expense
2Masayoshi Son’s 19th-century die-hard capitalist tactics in 21st-century investment era
3L&T Technology Services bags multi-million-dollar project in Europe