Union Steel Minister Chaudhary Birender Singh has said that foreign firms can immensely benefit by setting up manufacturing units in India, as the country has set up a target to ramp up its steel-making capacity to 300 million tonne (MT) by 2030-31. He also said that Indian steel industry is expected to invest $128 billion in next 10-12 years for adding the new capacity, for this, he pointed out that India will have to import a large number of critical plants and equipment worth almost $25 billion to meet the needs of domestic steel industry by 2030-31.
The minister said that spares worth over $500 million will have to be imported every year to meet the needs of India's steel industry by 2030-31. He noted that the opportunity offered by Indian steel industry must be utilised by the capital goods manufacturers, foreign technology providers and equipment manufacturers. Besides, he noted that foreign companies can set up manufacturing facilities in India on their own or through joint venture/ collaboration with Indian capital goods manufacturers. Stating that it will be a win-win situation, he said the multinational companies will bring fresh investments and latest technology to produce equipment and spares of world class quality at a global competitive rate.
Singh further stated that India can also save a lot of foreign exchange if the steel industries get their required machines and equipment from within the country instead of depending on the foreign based industries. He also said that the foreign manufacturers will enter into a JV with an Indian firm can get advantage of purchase preference. He noted that Indian manufacturers will also benefit from foreign investment and technology and also get to fulfil the eligibility condition of experience.
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