Capital Goods manufacture:38 MOUs signed

Leading Capital Goods (CG) producers from the across the globe inked 38 MoUs with leading Indian steel companies with a view to reducing  imports of CGs meant for the steel sector  by promoting manufacturing of capital goods in the country.TheMoUs were signed at a Conclave in Bhubaneswar 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  spares.

In his address Chief Minister of Odisha, Naveen Patnaik, said the MoUs have the potential of transforming India into a world-class manufacturing hub.CM said that Orissa has a rich mineral base and produces 14% 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.These MoUs are a win-win for both.  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  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 & spares. By local manufacturing, the maintenance of plant and machinery can also be done economically.