Leading capital goods (CG) producers from the across the globe inked 38 MoUs with domestic steel companies envisaging reduction in imports of such goods worth ₹39,400 crore by promoting local manufacturing.

The MoUs were signed at a conclave in Bhubaneswar organised by Ministry of Steel, in association with Confederation of Indian Industry (CII) and MECON, a statement from iron ore mining major NMDC said.

The National Steel Policy-2017 envisages 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 $25 billion. Further, for meeting the spares requirement, it is estimated that at 300 MT capacity level, India will have to spend about $500 million annually for import of proprietary and other spares.

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, is being worked upon by the Steel Ministry.”

“It will ensure that products/ product categories which do not get covered by the Domestically Manufactured Iron &Steel Policy will get covered by the proposed policy on the line which has been prescribed by the DIPP,” he said.

Odisha Chief Minister Naveen Patnaik said, “The MoUs inked today for the capital goods sector has the potential of transforming India into a world-class manufacturing hub. Odisha has a rich mineral base and produces 14 per cent of the country’s total mineral production. It has potential to become a major steel hub.”

Union Minister for Petroleum & Natural Gas Dharmendra Pradhan said Odisha has mega steel projects besides small and medium steel mills which also contribute significantly to the State’s overall steel production. The Government believes Odisha has the potential to produce nearly 100 mt of the total 300 mt output targeted by 2030-31 as the State is home to sizable mineral resource base.

Adam Szewczyk of the World Steel Association said India’s steel demand is set to develop in the short and medium term due to favourable macro-economic conditions and ambitious reform agenda. It will be very soon the second biggest market in the world. The low steel use per capita in India and structure of steel use with dominating construction typical for developing nations leave a lot of opportunities for development.