Pinnacle Plea for Indigenous Steel

India
IndiaImage Source: Oreaco

Synopsis:

India's steel leaders, including major players like AM/NS India, JSW, and Tata Steel, advocate for mandatory usage of domestically produced steel, specifically those "melted and poured" within the country, in solar and wind power projects. The surge in steel imports prompts this plea, emphasizing the critical role of steel in renewable energy projects. The Indian Steel Association argues for the compulsory inclusion of locally sourced steel to bolster national interests and promote self-sufficiency, reports Business Line.

Article:

India's steel industry, representing significant players such as AM/NS India, JSW, Tata Steel, Jindal Steel and Power (JSP), SAIL, and RINL, is rallying for a pivotal shift in the sourcing of steel for solar and wind power projects. In a collective appeal across various ministries, the Indian Steel Association (ISA) underscores the need for the mandatory use of "Melted and Poured" steel within the country.

Currently, a substantial portion of steel used in solar and wind projects is imported, despite the government's push for the Production-Linked Incentive (PLI) scheme for specialty steel manufacturing. High-end offerings crucial for such projects, including coated plates and alloy steels covered by the PLI scheme, are often sourced from abroad.

The ISA contends that, given the significant role of steel in renewable energy projects, domestically produced steel is vital for the nation's interests. The term "Melted and Poured" refers to steel produced and cast within India, ensuring the entire manufacturing process occurs domestically. The association stresses that the surge in steel imports for the National Renewable Mission compromises national interests.

Steel remains a fundamental raw material for solar and wind energy solutions, with approximately 50 metric tons of steel consumed for every 1 megawatt of solar power and 200 metric tons required for wind power solutions. The push for domestically produced steel, according to the ISA, would insulate the renewable energy mission from global uncertainties and establish a consistent supply chain involving MSMEs and other Indian enterprises.

The call for local procurement aligns with global trends, such as the Inflation Reduction Act of 2022 in the United States, which incentivizes investments in Climate and Clean Energy programs through substantial incentives for locally sourced materials.

Conclusion:

In the pursuit of a sustainable and self-reliant renewable energy future, India's steel industry makes a fervent appeal for the mandatory use of domestically produced and "Melted and Poured" steel in solar and wind power projects. This strategic shift not only safeguards national interests but also fosters a resilient and consistent supply chain. The plea reflects a global trend toward local procurement in clean energy initiatives, highlighting the industry's commitment to supporting India's clean energy mission.

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