Posted on 11 Sep 2024
India’s Ministry of Steel has announced that the country is on course to achieve its target of 300 million tons of steel production capacity per year by 2030, as outlined in the 2017 National Steel Policy. The Ministry noted that steel plants with a combined capacity of 34 million tons are expected to be operational before 2030, which should enable India to reach the goal.
Key challenges in reaching this target include the procurement of raw materials, particularly the beneficiation of lower-grade iron ore.
The Ministry stressed that the shift towards using iron ore with lower iron content will depend heavily on cost economics. Additionally, both capital and operational expenditures will influence these economic decisions.
To support the industry, the Ministry of Steel is proposing an increase in the basic steel import duty from the current 7.5% to 10-12%. Meanwhile, the Ministry of Commerce and Industry is suggesting discussions with major steel manufacturers about border tax adjustments.
The steel industry is also being urged to focus on improving competitiveness through investments in technology, such as artificial intelligence and digital tools, to enhance efficiency and reduce costs.
Source:Yieh
