“Our domestic steel manufacturers have all the capabilities to cater to the future requirements for steel in the oil and gas sector. We must balance quality and cost competitiveness," Steel minister Dharmendra Pradhan said.
Steel minister Dharmendra Pradhan on Tuesday asked domestic steel manufacturers not to take advantage of the domestically manufactured iron and steel policy (DM&ISP) to raise prices of the alloy which might escalate the project cost.
Taking part in a webinar: Atmanirbhar Bharat: Fostering Domestic Steel Usage in Oil & Gas Sector. organised by Ficci, the minister asked the domestic players to rise to the occasion so that cost does not escalate in the country’s effort to promote localisation of supply chain.
DMI&SP policy mandates preference of domestic steel over imports in government sourcing.
“Our domestic steel manufacturers have all the capabilities to cater to the future requirements for steel in the oil and gas sector. We must balance quality and cost competitiveness, he said.
Oil and gas sector is one of the largest end users of steel products. The growth trajectory of oil and gas industry and increasing demand for capital goods and steel ancillary products will create opportunities for more synergies and will also create more demand for domestic steel.
“Oil and gas sector is undergoing transformation. Expansion of city gas distribution network to cover 70% of our population, refining capacity augmentation, plan to setup 10,000 CNG stations, E&P activities all will drive steel demand in the sector,” he said.