Small Steel manufacturers are playing a big role in fulfilling India’s vision of producing 300 million tonnes of steel by the year 2030, but they needed to be uplifted through support of the Government and related agencies,” Union Minister of Steel, Chaudhari Birendra Singh said while addressing the MSME Steel Conclave 2018 organized by the Steel Re-rollers Association of Maharashtra (SRAM) in Mumbai today.
Highlighting the role of the MSME steel sector in conserving energy and natural resources, the Minister also emphasized its advancement through a comprehensive approach like introduction of high-end technology, developing scope of opportunities in government infrastructure projects, various government schemes drawn to offer support to the sector and subsidies offered.
“While 70% of related infrastructure is yet to come up, there are 1,500 bridges to be constructed or replaced in India due to being 60-70 years old and not containing steel which doubles the life of normal bridges. We want steel consumption to be increased in India – especially in the rural sector from 12kg per capita – to 160 kg per capita by 2031,” he said while noting that Rs 10 lakh crores would be required for increasing this capacity.
“Our industry is on a growth trajectory and we are committed to infrastructure growth. The Howrah, Jalna, Sealink are bridges of steel with the first two being ‘Pre-Independence’ and steel is very easily used in construction with 100 years of life presently in railways, airports etc,” he said, adding that steel prices – despite fluctuations – would get stabilized over the years.
Pointing out that there is a provision of Rs 6 lakh crores for infrastructure, he said that even if 10% went to steel, there would be around Rs 60,000 crore for the industry. “With our steel consumption about to increase by 2020 by nearing 180-185 million tonnes, your production increases India’s infrastructure consumption growth as well. So there is a big opportunity for the MSME sector,” he said, adding “This industry offers direct employment to 5 Lakh people and indirect employment to 25 lakh individuals, which is a notable contribution to Indian economy.”
Dr. Aruna Sharma, Secretary, Steel, Govt. of India outlined the role of small steel manufacturers in terms of production and employment creation which is visible in GDP growth and financial stability in the Indian steel sector. Highlighting the contribution of MSME sector as 57% in the industry, she urged the MSME steel sector to take advantage of the skill ability and explore benefits of various Government schemes and incentives for uplift of the sector.
In an effort to create a common platform for all stakeholders to deliberate on issues that affect small steel manufacturers, over 300 manufacturers from across India, government representatives, key consumers of steel, steel bodies from Maharashtra, Chattisgarh, Goa and Gujarat attended the conclave.
Yogesh Mandhani, President, Steel Re-rollers Association of Maharashtra, elaborated, “The effort is to get all together and evolve solutions through discussions. Such discussions will play an important role in understanding points from all concerned. For growth of smaller steel manufacturers, it is important that a comprehensive reexamination of current protocols on steel procurement by large buyers is conducted. Other issues like steel exports, skilling, technology upgradation, availability of raw material, etc. would also be relevant for the future of industry.”
The one-day Steel Conclave discussed various issues impacting the growth of steel industry. The discussions covered key topics including steel exports, use of secondary steel in government projects, encouraging growth of steel manufacturers from SME and MSME Sectors, current policy framework by large buyers, etc.
The conclave was attended by dignitaries such as Dr. Aruna Sharma, Sambhaji Patil Nilangekar, Minister of Labour & Skill Development, Govt. of Maharashtra, Sunil Porwal, Additional Chief Secretary, Industry Department, Government of Maharashtra, Ruchika Chaudhry Govil, Joint Secretary, Ministry of Steel, Yogesh Madhani – President, SRAM and Kamal Gupta – General Secretary SRAM.
