More Initiatives on Anvil to Boost Steel Sector in 2023

Union Minister Faggan Singh Kulaste said the focus in 2023 will be on increasing the supply of raw materials and producing more special grade steel as the country's steel production ramps up.

In an interview with PTI, Minister of State for Steel Kurast said that the industry will take more initiatives in 2023. Last year, the government introduced the Specialty Steel Production Linked Incentive (PLI) scheme to boost production of special steel and high-end alloys.

Special grade steels are used in everything from electric power, shipping, railways and automobiles. Demand for this steel is met through imports.

"As steel production in the country continues to grow, our focus will be on measures to support the industry, in addition to finding new markets," he said.

Securing raw materials for steel production will be a key area of focus for the government, as the country relies heavily on imported raw materials such as coking coal.

While other minerals are abundant, India relies on imports for coking coal, Kurast said. The development of mining and washing technologies can make the country self-reliant and bring huge employment opportunities and accelerate the process of urban, semi-urban and rural development.

In 2022, the government has taken various measures to support the steel industry by eliminating export duties on steel products and extending export incentives under the Duty and Tax Relief for Exported Products (RoDTEP) program to steel products for a specific period.

"The imposition of export duties on the steel industry has had a number of consequences for the industry and the country. India loses the opportunity to sell excess volumes, so the country faces a trade deficit. While there are duty reliefs, surge imports at predatory prices is a challenge , said Sahay.

The recent removal of export dutie Union Minister Faggan Singh Kulaste said the focus in 2023 will be on increasing the supply of raw materials and producing more special grade steel as the country's steel production ramps up. s also bodes well for the domestic steel industry to be aggressive in the global market, the Steel Authority of India (SAIL) said in a statement. This year has largely been a mixed year for domestic sentiment and performance.