Union Minister for Petroleum and Natural Gas, Skill Development and Entrepreneurship Dharmendra Pradhan on Tuesday said that Odisha is India's rich mineral home base and that the state's mega steel projects contribute significantly to India's overall steel production.
Pradhan was speaking at the Bhubaneshwar Conclave where leading Capital Goods (CG) producers from across the world inked 38 Memoranda of Understanding (MoU) with top Indian steel companies for promoting and manufacturing capital goods in the country.
Speaking on the occasion, Pradhan, said, "Odisha has mega steel projects besides small and medium steel mills which also contribute significantly to the state's overall steel production."
"Odisha has the potential to produce nearly 100 million tonnes (MT), of the total 300 MT output targeted by 2030-31, as the State is home to the sizeable mineral resource base. We welcome the proposal by the Heavy Industries Minister to set up a machine tools park in Odisha," Pradhan added.
The National Steel Policy - 2017 envisages the creation of 300 million tonnes (MT) of steel capacity in the country by 2030-31 as against existing 130 MT. The estimated import of plant and equipment, for reaching 300 MT capacity, will be around USD 25 billion.
Also Read
Further, for meeting the spares requirement, it is estimated that at 300 MT capacity level, India will have to spend about USD 500 million annually for import of proprietary and other spares.
In his keynote address, Chief Minister of Odisha Naveen Patnaik said that the MoUs inked at the conclave for the CG sector has the potential of transforming India into a world-class manufacturing hub.
"Odisha has a rich mineral base and produces 14% of the country's total mineral production in the country. Odisha is focusing on attracting major investments in the metal sector. Our state has ample potential to become a major steel hub," Patnaik said.
Union Steel Minister Chaudhary Birender Singh said, " In order to ensure that the MOUs which are being signed today culminate into manufacturing of capital goods, a purchase preference policy to cover all purchases of steel products, including capital goods are being worked upon by the Steel Ministry."
"The foreign manufacturers who will enter into a JV with an Indian firm can get the advantage of purchase preference. Indian manufacturers will benefit from foreign investments and technology and also get to fulfill the eligibility condition of experience," Chaudhary added.
Minister for Heavy Industries and Public Enterprises, Anant G. Geete, said the Indian manufacturing companies have the capability to manufacture all non-proprietary items and the Government is committed to facilitating technological tie-ups between domestic CG producers and their foreign counterparts for capacity building.
He recalled that his ministry has helped in building a machine tools hub in Karnataka and suggested the Heavy Industry Ministry do the same in Odisha
Adam Szewczyk of the World Steel Association said, "India steel demand is set to develop in the short and medium term due to favourable macroeconomic conditions and ambitious reform agenda. It will be very soon the second biggest market in the world."
The Conclave was attended by other senior officers of Ministry of Steel, Chairmen and Managing Director of Steel Authority of India (SAIL) Anil Kumar Chaudhary, Chairman of Bharat Heavy Electricals Limited (BHEL) Atul Sobti and Chief Executive Officers (CEOs) of other steel companies from India and abroad.
Disclaimer: No Business Standard Journalist was involved in creation of this content
