Cabinet approves preference for domestically manufactured iron, steel products
04 May, 2017, 21:34
"After 12 years, a new policy for steel sector has been approved, which will provide a great boost to the industry and make it globally competitive", Steel Minister Chaudhary Birender Singh told reporters here.
Mumbai: The cabinet late on Wednesday cleared a policy for the domestic steel sector which plans to treble India's steel production capacity by 2030 and help the country meet its steel requirements.
Among the key features, India's steel-making capacity is projected to reach 300 million tonnes and production 255 million tonnes by 2030, for which the sector would need an additiional investment of Rs 10 lakh crore, the government said in a statement.
The Cabinet also approved an ordinance to regarding amendment to the Banking Regulation Act targeted at controlling the problem of bad loans of public sector banks.
The potential of the MSME steel sector has been recognised, too.
This policy seeks to give preference to Domestically Manufactured Iron & Steel Products (DMI & SP) in the government projects. The policy will be applicable on all government tenders where price bids are yet to be opened, impacting several foreign players who are in the fray to bag contracts.
The ministry will also ensure availability of raw materials like iron ore, coking coal and non-coking coal, natural gas etc at competitive rates.
A steel ministry spokesman was not immediately available to respond to telephone calls from Reuters seeking comment.
The policy also looks at increasing per capita steel consumption to 160 kg by 2030-31 and encouraging the industry to be a world leader on energy and raw material-efficient steel production by 2030-31 in a safe and sustainable manner.
Domestic manufacturers are further presumed to have self-certified their products' eligibility under preferential procurement.
It will not normally be the responsibility of procuring agency to verify the correctness of the claim.
In case any manufacturer is aggrieved, a grievance redressal committee set up under the Steel Ministry will dispose of the complaint in four weeks.
The policy document does not indicate how the government plans to achieve the stated goals, brokerage B&K Securities wrote in a note to clients on Thursday.