Steel firms ink 38 Mous with capital goods producers
The ministry of steel’s conclave on capital goods, jointly organised with the Confederation of Indian Industry (CII) and MECON, witnessed a major development after capital goods (CG) producers from across the world signed 38 Mous with Indian steel companies in Bhubaneswar.
The agreements will reduce imports for the steel sector worth ₹39,400 crore.
Steel minister Chaudhary Birender singh said that in order to ensure that the Mous signed culminate into manufacturing of capital goods, a purchase preference policy to cover all purchases of steel products, including capital goods, is being worked out by the ministry.
The national steel Policy – 2017 envisages creation of 300 million tonnes (MT) of steel capacity in the country by 203031 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. Odisha chief minister Naveen Patnaik said the pacts have the potential of transforming India into a world-class manufacturing hub.