Construction and infrastructure, automotive and defence sectors contribute to about 90% India’s steel consumption. Details of impact of steel in these sectors are as follows:-

Construction Sector: Steel is integral to the construction of large-scale infrastructure expansion of the government such as highways, bridges, railways, metro systems, and affordable housing programs.

Automotive Sector: Steel is used in manufacturing a wide range of components, including chassis, body panels, and engine parts. Initiatives such as Make in India have increased the demand for domestically produced steel.

Defence Sector: The need for specialized, high-strength steel alloys has risen alongside increasing defense investments to strengthen the country’s military capabilities. Steel is also crucial in India’s expanding defense infrastructure, such as military bases and storage facilities.

Production Linked Incentive (PLI) Scheme was notified by the government in July, 2021 to promote the manufacturing of specialty steel within the country and reduce imports by attracting investments. The anticipated additional investment under the PLI Scheme for Specialty Steel is Rs. 27,106 crores, downstream capacity creation of around 24 million tonnes and a direct employment generation of 14,760.

Steel is a deregulated sector and the Government acts as a facilitator by creating a conductive policy environment for the development of steel sector across all states in the country, including Odisha. Decisions regarding setting up of a steel plant is taken by industry based on techno-commercial consideration including raw material availability, distance from port, logistics etc. The following table indicates the growth of steel production and consumption during the last five years is given as follows:

Year	Crude Steel (in MnT)	Finished Steel  (in MnT)
	Production	Production	Consumption
2019-20	109.14	102.62	100.17
2020-21	103.54	96.20	94.89
2021-22	120.29	113.60	105.75
2022-23	127.20	123.20	119.89
2023-24	144.30	139.15	136.29
Source: Joint Plant Committee, MnT-million tonnes

This information was given by the Minister of State for Steel and Heavy Industries, Shri Bhupathiraju Srinivasa Varma in a written reply in the Lok Sabha today.

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MG/KSR

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