India's steel sector is poised to receive an investment of nearly Rs 30,000 crore and boost its production capacity by 25 million tonnes within five years, according to a senior official from the Ministry of Steel. By the end of FY 2029, the sector is expected to achieve a total investment of Rs 29,500 crore and increase its production capacity by 25 million tonnes, stated Nagendra Nath Sinha, Secretary, Ministry of Steel. View More

NEW DELHI: India 's steel sector is expected to see an investment of close to Rs 30,000-crore, and a production capacity boost by 25 million tonnes in five years, according to a top official. ET Guide to ITRMade a mistake in your filed ITR? Check the revised ITR filing last dateHow to file ITR after July 31 deadline?What is the penalty for filing ITR after the July 31 deadline "Given the progress we have made so far, we are confident that by the end of FY 2029, we will achieve a total investment of Rs 29,500 crore and an augmentation of production capacity by 25 million tonnes," Nagendra Nath Sinha , Secretary, Ministry of Steel , told ET. The Centre inked as many as 57 Memorandums of Understanding (MOUs) with companies entailing Rs 14,600 crore of investment as of March 2024 which has led to the additional production capacity of 3 lakh tonnes, under the ambitious production-linked incentive scheme (PLI). Last year, Prime Minister Narendra Modi-led government approved PLI scheme across 14 key sectors including speciality steel segment, with an outlay of Rs. 1.97 lakh crore to facilitate country's manufacturing capabilities and exports. "As India aspires to become a $10 trillion economy and realises the vision of Viksit Bharat, or developed India, steel will undoubtedly play a pivotal role." Sinha said, adding that steel remains an integral part for a multitude of sectors. Steel production, according to him, not only supports domestic industries but also enhances India's export capabilities, contributing to a favorable trade balance. Crisil, a marketing research and ratings firm in a recent finding said that the country's steel consumption grew 13.6% in FY24, reaching 136 million tonnes (mt). Infrastructure, construction and automobiles are the top steel consuming sectors, and the latter contributes nearly 14% to the manufacturing GDP and 2% to the country’s gross domestic product or GDP. The construction sector, according to experts, contributes to 38% of India's steel demand while infrastructure accounts for 29% of India's steel demand of 67 mnt by 2030, with roads, highways, and metros making up 50-60% of this demand. The sector, according to Sinha, employs more than 6 lakh people directly, and over 20 lakh people indirectly. "By fostering a robust steel industry through initiatives like the PLI scheme, we are not just building the physical framework of a developed nation but also creating jobs, spurring technological innovation, and paving the way for economic resilience." The National Steel Policy 2017 envisages a production capacity of 300 mt, and seeks to increase per capita steel consumption to the level of 160 kilograms by 2030. In order to achieve its 2025 economic growth target of $5 trillion, the Modi government is investing in infrastructure through the National Infrastructure Pipeline (NIP), particularly in highways and expressways, rail network augmentation, freight line de-congestion, ports and water-ways. The budgetary outlay for infrastructure-related ministries increased from Rs 3.7 lakh crore in FY23 to Rs 5 lakh crore in FY24. Nearly Rs 70 lakh crore worth of developmental projects are currently at various stages of implementation, as per the India Investment Grid (IIG) statistics. ET Guide to ITRITR Filing Last Date 2024 Extension Live Updates (You can now subscribe to our Economic Times WhatsApp channel) (You can now subscribe to our Economic Times WhatsApp channel)