Infra allocation, startup support to boost innovation in steel sector: ISA

Steel sector on Budget: The increased funding for research and development (R&D) announced in the Budget, along with support for startups and micro, small, and medium enterprises (MSMEs), is set to drive innovation in steel manufacturing, according to the Indian Steel Association (ISA). 

The ISA stated on Wednesday that the allocation of Rs 11.11 lakh crore for national infrastructure projects will significantly benefit the steel industry, create millions of jobs, and enhance national infrastructure.

During her Budget speech on Tuesday, Finance Minister Nirmala Sitharaman introduced several measures across various sectors, including infrastructure, manufacturing, healthcare, education, startups, and green energy.

The Budget’s strong emphasis on infrastructure development such as roads, railways, ports, and urban development is expected to generate employment and boost productivity. Increased funding for R&D and support for startups and MSMEs are also anticipated to foster innovation in steel manufacturing, the ISA noted.

Naveen Jindal, Chairman of Jindal Steel and Power Ltd (JSPL), commented, “The initiatives aimed at these nine strong pillars reflect fiscal prudence and promise inclusive development for our country. Under the leadership of PM Narendra Modi, our government has once again laid a strong foundation for a more prosperous India.”

TV Narendran, CEO & MD of Tata Steel, remarked that the steel sector will see increased demand as a critical component of infrastructure development, particularly with the enhanced budgetary allocation for housing and water supply. He also commended the government’s intention to develop a roadmap for emission targets in ‘hard to abate’ industries, emphasising the necessity of government support for the successful transition of these sectors. "We await further details on the regulations pertaining to the Indian Carbon Market," he added.

Atul Bhatt, CMD of Visakhapatnam-based RINL, highlighted that the Budget includes pivotal provisions for developing Andhra Pradesh’s new capital, the Polavaram project, industrial nodes, and the backward regions of the state. These initiatives are expected to boost steel consumption in the region and drive regional development.

Dilip Oommen, CEO of ArcelorMittal Nippon Steel India, praised the continued focus on accelerating the energy transition. However, he expressed hope that the government will take decisive actions to curb steel imports at predatory prices, which he identified as a serious and immediate concern.

SAIL Chairman Amarendu Prakash noted that the commitment to enhance connectivity and build resilient infrastructure will drive steel consumption and create a multiplier effect, benefiting various sectors and contributing to the nation’s overall economic prosperity.

Kamdhenu Group CMD Satish Kumar Agarwal pointed out that the allocation of Rs 10 lakh crore for constructing 1 crore houses for the urban poor and the announcement of variable gap funding support for developing rental housing with dormitory-like accommodation for industrial workers in Public-Private Partnerships (PPP) mode will significantly boost the housing sector.

(With PTI inputs)