In the wake of the Union Budget announcement, the steel and mining industries are abuzz with anticipation. Director Incharge of Rourkela Steel Plant, Atanu Bhowmik, renowned for his profound expertise, shared his insights with the Pioneer on how the new budgetary measures are poised to impact these crucial sectors said that the government's persistent focus on infrastructure, underscored by increased allocations for roads, railways, and urban projects, stands to significantly boost steel demand.
Programs like 'Gati Shakti' are central to this strategy, heralding an era of heightened steel consumption as infrastructure development accelerates. Bhowmik highlighted that this surge in infrastructure activity will inevitably strain the mining sector, which is already grappling with supply chain disruptions and escalating production costs.
"The budget's allocation of additional funds for the production-linked incentive (PLI) scheme for specialty steel is a significant step. This initiative is designed to encourage domestic steel manufacturers to adopt advanced technologies and diversify their product ranges, thereby reducing our dependence on imports and boosting our competitiveness," said the DIC.
"Finance Minister Nirmala Sitharaman's decision to eliminate the 2.5% basic customs duty (BCD) on ferronickel imports, which is crucial for stainless steel production, aims to cut production costs," Bhowmik pointed out. "Additionally, the extension of the BCD exemption on ferrous scrap until March 2026 and the zero BCD on 25 critical minerals are measures that will further streamline the raw material supply chain for steelmakers," he said.
Further Bhowmik emphasized, "The government's pledge to build an additional two crore affordable houses over the next five years, along with its continued focus on infrastructure-led growth, is set to drive domestic steel demand. This strategy is expected to help steelmakers navigate the challenges posed by weak global demand and overcapacity issues in markets like China."
"The budget also brings noteworthy improvements for the mining sector," Bhowmik stated. "The proposed unified logistics interface platform aims to enhance the efficiency of the transportation and logistics ecosystem, benefiting the mining industry by reducing costs and time.
"The budget's focus on clean energy technologies and sustainability is in line with the government's net-zero emissions target by 2070," Bhowmik remarked. "Initiatives like the 'Battery Swapping Policy' are expected to drive the mining sector towards more environmentally friendly practices, contributing to the long-term sustainability of the industry."
"Despite the positive measures, challenges such as global commodity price volatility and increasing costs for raw materials and energy remain," Bhowmik acknowledged. "While the budget provides a solid foundation, additional steps to address input cost pressures and incentivize the adoption of advanced technologies could enhance the industry's resilience."
DIC Atanu Bhowmik concluded, "The Union Budget presents a promising yet challenging outlook for the steel and mining sectors. With the right policy support and strategic industry initiatives, these sectors are poised to drive India's industrial growth and development. I remain cautiously optimistic that the steel and mining industries will continue to be the backbone of India's economic progress."
