38 MoUs signed aimed at saving nearly Rs 40000 crore Capital Goods import
Bhubaneswar: Leading
Capital Goods (CG) producers from across the globe inked 38 MoUs with leading Indian steel companies envisaging reduction in
imports of CGs meant for the steel sector worth Rs 39,400 crore by promoting
manufacturing of capital goods in the country.
The MoUs were
signed at a Conclave in Bhubaneswar on Tuesday which was organized by Ministry
of Steel, Government of India in association with Confederation of Indian
Industry (CII) and MECON.
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 USD 25
billion.
Further, for
meeting the spares requirement, it is estimated that at 300 MT capacity level,
India will have to spend about USD 500 million annually for import of
proprietary and other spares.
In his keynote
address, Chief Minister of Odisha, Naveen Patnaik, said the MoUs inked today for
the CG sector has the potential of transforming India into a world-class
manufacturing hub. The CM said that Orissa has a rich mineral base and produces
14 percent of the country’s total mineral production in the country.
Orissa is focusing
on attracting major investments in the metal sector, the Chief Minister said
and added that state has ample potential to become a major steel hub.
In his welcome address, Steel Minister Chaudhary Birender Singh said
that 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.
These MoUs are a win-win for both. The foreign manufacturers who will
enter into a JV with an Indian firm can get advantage of purchase preference.
Indian manufacturers will benefit from the foreign investments and technology
and also get to fulfil the eligibility condition of experience, the minister said
In his address,
Minister for Heavy Industries and Public Enterprises, Anant G Geete, said the
Indian manufacturing companies have the capability to manufacture all
non-proprietary items and the Government is committed to facilitate
technological tie-ups between domestic CG producers and their foreign
counterparts for capacity building. He recalled that his ministry has helped in
building a machine tools hub in Karnataka and suggested that his ministry
proposes to do the same in Odisha and sought the state government’s cooperation
in this regard.
In his address, Minister
for Petroleum & Natural Gas, Skill Development and Entrepreneurship,
Dharmendra Pradhan said that 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 that Odisha has the potential to produce nearly 100 Million Tonne of
the total 300 MT output targeted by 2030-31 as the state is home to sizeable
mineral resource base. He welcomed the proposal by Mr Geete to set up a machine
tools park in Odisha.
Secretary,
Ministry of Steel, Binoy Kumar, said it is in the interest of stakeholders that
the Capital Goods Industry should be strengthened so that competition increases,
and this helps in reducing the capital cost of projects. Today, the imported
plants may come at a lower cost but this is more often than not followed by
their high priced maintenance contracts and spares. By local manufacturing, the
maintenance of plant and machinery can also be done economically.
Adam Szewczyk of
the World Steel Association said India 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.
In
his Vote of Thanks Special Secretary and Financial Advisor Steel Ministry Saraswati
Prasad thanked all the dignitaries for participating in the Conclave and wished
that the fruitful deliberations would serve as a roadmap to cement the ties
between CG players and steel makers.
Comments
Post a Comment