Budget 2024: Steel sector innovation to get a boost from infrastructure allocation, support to startups, says industry body

The increased funding for R&D announced in the Budget and the support extended to startups and MSMEs will foster innovation in steel manufacturing, the apex industry association said on Wednesday.

Further, the allocation of Rs 11.11 lakh crore is set to enhance national infrastructure, create millions of jobs, and directly benefit the steel industry, the Indian Steel Association (ISA) said in a statement.

In her Budget speech on Tuesday, Finance Minister Nirmala Sitharaman announced a slew of measures for sectors, including infrastructure, manufacturing, healthcare, education, startups, and green energy, among others.

The Budget's strong emphasis on roads, railways, ports, and urban development will not only generate employment but also improve overall productivity. The increased funding for R&D and the support extended to startups and MSMEs will foster innovation in steel manufacturing, the ISA said.

Jindal Steel and Power Ltd (JSPL) Chairman Naveen Jindal said, "The initiatives aimed at these 9 strong pillars reflect fiscal prudence and also promise inclusive development for our country.

Under the leadership of PM Narendra Modi, our government has yet again laid a strong foundation for a more prosperous India!." T V Narendran, CEO & MD, Tata Steel said as a key component of all such infrastructure development, steel will see increased demand, particularly with the enhanced budgetary allocation for housing and water supply.

"We also commend the government's intention to develop a roadmap for emission targets in 'hard to abate' industries. Government support is crucial for the successful transition of these industries. We await further details on the regulations pertaining to the Indian Carbon Market," he said.

"The Budget includes pivotal provisions for the development of Andhra Pradesh's new capital, the Polavaram project, industrial nodes, and the backward regions of AP. These initiatives are expected to boost steel consumption in the region and drive regional development," said Atul Bhatt, CMD of Visakhapatnam-based, RINL.

"The continued focus on accelerating the energy transition is also highly commendable. However, we remain hopeful that the government will take decisive actions to curb steel imports at predatory prices, which is a serious and immediate concern," said Dilip Oommen, CEO, ArcelorMittal Nippon Steel India.

SAIL Chairman Amarendu Prakash said This commitment to enhance connectivity and build resilient infrastructure will not only drive steel consumption but also create a multiplier effect, benefiting various sectors and thereby contributing to the nation's overall economic prosperity.

Kamdhenu Group CMD Satish Kumar Agarwal said the allocation of Rs 10 lakh crore for the construction of 1 crore houses for the urban poor and the announcement of variable gap funding support for the development of rental housing with dorm-like accommodation for industrial workers in (Public Private Partnerships) PPP mode will lead to a significant boost to the housing sector.