Going by Prime Minister Manmohan Singh's call that boosting manufacturing sector is key for achieving 8-9 percent economy growth, the government has set a target of trebling steel production capacity to 300 million tonne (mt) by 2025. With this development, the Steel Ministry is now expected to prepare a road map for the master plan in eight weeks. The target of 300 million tonne will be a quantum leap from the level of 89 million tonne achieved in 2011-12, and which is projected to climb to 120 million tonne this fiscal.
Singh, at a meeting of the High-Level Committee pointed that manufacturing sector has been underperforming and underscored the need to 'remedy' this situation by removing the 'bottlenecks that hinder its progress.
The growth of the sector, for long,has been hamstrung by bottlenecks in the form of land acquisition, environmental clearances and local issues. Huge projects like POSCO in Odisha and Arcelor Mittal in Jharkhand are facing difficulties because of such issues for over a decade.
In view of this, the PM-led panel in the short-run has proposed a pro-active facilitation of pipeline projects on priority basis by the Steel Ministry and the new investment facilitation mechanism in the Cabinet Secretariat.
Besides, it has also urged state-run Steel Authority of India (SAIL) to leverage existing infrastructure to expand capacity substantially and work out plans for capacity expansion and production of speciality steels by September-end. Further, the panel has also proposed to float project-specific SPVs for identified sites, which would assemble land, get necessary approvals and clearances and tie up water and raw material. This SPV later on could be offered in a transparent manner for takeover by investors through a bidding process.
Singh, at a meeting of the High-Level Committee pointed that manufacturing sector has been underperforming and underscored the need to 'remedy' this situation by removing the 'bottlenecks that hinder its progress.
The growth of the sector, for long,has been hamstrung by bottlenecks in the form of land acquisition, environmental clearances and local issues. Huge projects like POSCO in Odisha and Arcelor Mittal in Jharkhand are facing difficulties because of such issues for over a decade.
In view of this, the PM-led panel in the short-run has proposed a pro-active facilitation of pipeline projects on priority basis by the Steel Ministry and the new investment facilitation mechanism in the Cabinet Secretariat.
Besides, it has also urged state-run Steel Authority of India (SAIL) to leverage existing infrastructure to expand capacity substantially and work out plans for capacity expansion and production of speciality steels by September-end. Further, the panel has also proposed to float project-specific SPVs for identified sites, which would assemble land, get necessary approvals and clearances and tie up water and raw material. This SPV later on could be offered in a transparent manner for takeover by investors through a bidding process.
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