"The government is working on creating domestic capacity for the equipments being imported in the country," said Sunil Barthwal, Joint Secretary, Ministry of Steel at an ASSOCHAM event held at New Delhi. India’s target is to more than double the steel output by 2030, from 10 MT at present. Barthwal said that the steel industry has grown by 6.7% in 9 months (upto September) but the domestic demand has fallen short. India has become the net exporting country of steel, said Barthwal, Joint Secretary, Ministry of Steel while inaugurating an ASSOCHAM India Steel Summit 2017 at New Delhi.

 

Barthwal said that pallet industry should be more competitive. The government is also putting thrust on how the logistics can improve, how the raw materials security can improve etc. The strategy are laid down like coal linkages should be available, auction should be available and more importantly the washery capacities in the country should improved because if the washery capacity in the country improves than definitely better quality lighter coal (low-ash) content of coaking coal will be available to the country. "We are also trying to bring out a policy where domestic scrap generation and domestic scrap availability increases in the country" he said.

 

He expressed that scrap availability increases in the country because still India imports about 6-7 million tonnes of scrap and therefore MSTC has signed one joint venture (JV) agreement with Mahindra for setting up scrap plant in Noida. And if these scarp collection centres and induction furnaces come together jointly in a clusters, a lot of steel development which is scraped based can take place in the country.

 

The steel ministry has made the task forces like railways, power, shipping and looking each and every aspect that how this logistic cost steel sector can be reduced. He also pointed out that steel should be transported through inland waterways. It will receive the competitive advantages of steel at lower price in India but will also be globally competitive, said Joint secretary of ministry of steel. The trend in power sector is that the solar sector, power rates and the capital intensity in solar sector have drastically come down and they are able to sell that electricity at a very low price.

 

Inaugurating the ASSOCHAM Steel Summit, Vishnu Deo Sai, Minister of State for Steel said, "The Indian steel industry contributes approximately 2% to the country’s GDP and employs about 25 lakhs people directly and indirectly. There is a need to develop good design, engineering and manufacturing facilities in the country to migrate long term dependence on imports of state-of-of the-art facilities/equipments at phenomenal cost."