Edited excerpts.
Q: Which are the top 2or 3 sectors that fuel steel consumption in India? What are the trends?
The construction sector will continue to contribute about 38% of India's steel demand until 2030. Housing represents around 70-75% of the construction sector. Infrastructure would account for 29% of India's steel demand of 67 million tonne by 2030, with roads, highways, and metros making up 50-60% of this demand. To achieve its 2025 economic growth target of USD 5 trillion, India is investing in infrastructure through the National Infrastructure Pipeline (NIP), particularly in highways and expressways, rail network augmentation, freight line de-congestion, ports and waterways. This growth is driven by initiatives like Bharatmala, Sagarmala and National Rail Plan 2030. Government efforts to increase the country's irrigated area, like PMKSY, are also boosting steel consumption. Demand from the automobile sector is set to increase from 14 million tonne to 18 million tonne.
Q: What is the current steel production capacity in India? How is the government planning to expand it, and by how much?
According to the provisional data released by JPC for April-March 2023-24, domestic crude steel production stood at 144.043 million tonne and was up by 13.2% over the same period the previous year. The Ministry of Steel is guided by the National Steel Policy 2017 which envisages a production capacity of 300 million tonne by 2030-31.
Q: How has been the response to the PLI scheme so far?
The performance of the PLI scheme in the special steel sector has been very encouraging. As of March 2024, we've seen the signing of 57 Memorandums of Understanding (MOUs) and a total investment of approximately INR14,600 crore. This has led to an additional production capacity of 3 lakh tonne already realized. Given the progress we've made so far, we're confident that by the end of FY29, we will achieve a total investment of INR 29,500 crore and an augmentation of production capacity by 25 million tonne.
Q: What are your initiatives to boost MSMEs in the steel sector?
National Institute of Secondary Steel Technology (NISST) has been set up as an institution to support the secondary steel sector by way of providing industry specific technical support, skill development, R&D and testing services. This organization has been working since 1987. Its capacities are being bolstered through an INR 5-crore grant.
Q: What steps are you taking to enhance productivity and efficiency of PSUs?
Continual efforts are being made to update and enhance safety guidelines across the steel sector. A dedicated Committee has been established to address various technological and commercial aspects of coking coal in PSUs. This is significant as coking coal constitutes around 35%-40% of the cost factor in steel production.
Q: You recently said that the government is working on a green-hydrogen based process for carbon emission reduction. Share insights and updates on the direct reduced iron technology.
The Ministry of Steel is collaborating with the Ministry of New and Renewable Energy (MNRE) to advance the use of green hydrogen in the steel industry, a key component of India's commitment to reducing carbon emissions. The launch of the National Green Hydrogen Mission (NGHM) on January 4, 2023, with an outlay of INR 19,744 crore, aims to establish India as a global hub for the production, usage, and export of Green Hydrogen (GH2) and its derivatives.
Q: What role does technology play to enhance the production capacity including mining operations? Do you think 5G technology can be implemented to facilitate large-scale production?
Technology is the cornerstone of modernizing production and mining operations. Embracing cutting-edge technologies can revolutionize the way we extract, process, and produce steel, leading to significant enhancements in efficiency, safety, and output as well as reduction of cost.
One of the most transformative technologies on the horizon is 5G. Imagine a fully connected mining operation where real-time data flows seamlessly from deep underground to the control centers above. With 5G, we can implement advanced IoT (Internet of Things) devices that monitor every aspect of mining, from equipment health to environmental conditions, ensuring optimal operation and timely maintenance. This connectivity not only boosts productivity but also significantly improves safety by providing instant communication and automated emergency responses.
In steel production, 5G can facilitate the creation of smart factories where AI and machine learning algorithms optimize every stage of the manufacturing process. Predictive maintenance can be employed to foresee equipment failures before they occur, ensuring uninterrupted production. Additionally, real-time data analytics can fine-tune operations to reduce energy consumption and minimize waste, contributing to both cost savings and environmental sustainability.
Q: How do you think steel can play a key role in making India a USD 10 trillion economy, and further contribute to the PM's vision of Viksit Bharat?
As India aspires to become a USD 10 trillion economy and realizes the vision of Viksit Bharat, or developed India, steel will undoubtedly play a pivotal role. Steel has an employment multiplier factor of 6.8x, contributing approximately 14% to the manufacturing GDP and 2% to the country’s GDP. It employs over 6 lakh people directly and 20 lakh people indirectly. These are factors that all support efforts towards building an ‘Atmanirbhar Bharat’.
By fostering a robust steel industry through initiatives like the PLI scheme, we're not just building the physical framework of a developed nation; we're also creating jobs, spurring technological innovation, and paving the way for economic resilience. In essence, steel is not just a material—it's a catalyst for India's transformation into a global economic powerhouse.
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