India signs $5 billion worth agreement to boost Iron and Steel industry
NEW YORK (Scrap Register): Thirty-eight pacts worth $5 billion were signed among 20 technology providers, capital goods manufacturers and Steel producers, which will give impetus to the manufacturing of capital goods for Iron and Steel industry.
Of the 20 companies who exchanged the MoUs, about 12 are foreign players.
For adding the new capacity, the Indian Steel industry is expected to invest $128 billion in next 10-12 years. For this, India will have to import a large number of critical plants and equipment worth almost $25 billion to meet the needs of domestic Steel industry by 2031.
India has set a target to increase its crude Steel capacity to 300 million tonnes by 2030-31 from about 134 million tonnes at present.
To ensure that MoUs signed culminate into manufacturing of capital goods, a purchase preference policy to cover all purchase of Steel products is being worked upon by the ministry. It will ensure that products and product categories that are not covered by the DMI&SP (Domestically Manufactured Iron & Steel Products) policy will get covered by the proposed policy on line of which has been prescribed by the DIPP.
