India: Steel minister stresses on collaborative action to boost demand

Union Steel Minister Ram Chandra Prasad Singh, in a meeting with Indian Steel Association (ISA) members, emphasised on joint efforts and actions to enhance steel demand in rural areas and government projects like the National Infrastructure Pipeline.

Steel companies, at the meeting, requested the ministry's support on demand creation, notifying rules of PLI scheme, informing about the National Mineral Index, helping with logistics and freight-related issues and speedy clearance of capacity expansion proposals.

ISA representatives also pointed out that the cost of inputs, including raw material and logistics, is high which is affecting the competitiveness of the Indian steel sector.

Taking into account the concerns and challenges of the Indian steel industry, the steel minister reassured on providing all needed support to enhance steel demand. He suggested the industry should make joint efforts to create awareness of the advantages of using steel in projects such as housing, domestic, gas and water pipelines to generate organic demand.

The minister directed his officials to hold a discussion with the industry to address concerns regarding the PLI scheme for specialty steel. Due consultation with the steel players should be done prior to the issuance of guidelines for the PLI scheme.

He also directed that logistics issues pertaining to shipping and inland waterways should be pursued with a focused approach.

In addition, he assured that the industry's concerns related to railways will be discussed with the concerned ministry since the steel sector predominantly utilises railways for transportation of raw materials and finished goods.

Acknowledging the concerns regarding environment and emissions generated by the steel sector, the Union minister exhorted the industry to increase usage of hydrogen in steelmaking.

For environmental and forest clearance related issues, the steel minister promised to extend help to hasten up the process of capacity addition in the country.