Increased capex to boost domestic steel demand, generate employment: Steel industry.
The increased capex allocation of Rs 10 lakh crore announced in the Union Budget will lead to a pick up in demand for steel and generate employment in the country, the steel industry said on Wednesday. Finance minister Nirmala Sitharaman tabled the Union Budget for 2023-24 in Parliament.
"A significant 33 percent increase in capital expenditure to Rs 10 lakh crore -- 3.3 percent of the GDP -- thrust to fast-track infrastructure development, and the highest ever Rs 2.40 lakh crore for railways will translate into robust domestic steel demand, thus spurring private investments and job creations," it is said.
First- and last-mile connectivity for sectors like steel, ports, coal, etc., with an investment of Rs 75,000 crore, will improve logistics efficiency, it is said.
The Chairman of Metals and Minerals Committee, PHDCCI, and Group CEO, Metals & Mining, Essar Capital, said the overall capital outlay of Rs 13.7 lakh crore would spur the growth of the infrastructure and construction sector in the country, and the direct beneficiary of which will be the domestic steel industry.
The finished steel consumption is expected to be 118 million tonnes (MT) in the fiscal year. It will reach 132 MT in the following 2023-24 financial year.
JSW Group Chairman Sajjan Jindal said: "The 40 percent increase in the income tax rebate limit from Rs 5 lakh to Rs 7 Lakh is a huge comfort that this budget has given to our middle-income group and is a great step to strengthen their finances."
Terming the scheme to support central and state government and municipalities in replacing their old polluting vehicles as a "master stroke," he said it would boost the manufacturing sector, primarily driven by the auto industry, and bring more efficient machines onto the road.
"This government has been giving a huge push to the infrastructure upgradation of our nation, and an increase in spending on road and rail infrastructure is a testament to their philosophy. This will help maintain the momentum of our economic growth, contrary to the world scenario," it is said.
"There is a more holistic focus on logistics with significant investments in the railways and proposed work on coastal shipping. The Budget also assigns resources for the long-term and important transition to a greener future. The support to the tourism sector and MSMEs were also much needed as these sectors suffered the most during covid," it is said.
Managing Director, Jindal Steel & Power Limited (JSPL), said the government has continued to put focus on infrastructure and construction with a budgetary allocation of Rs 10 lakh crore. This augurs well for the steel and cement industry. These industries will also benefit from the focus on rail and transport infrastructure projects and budgetary allocation to improve urban infrastructure in tier 2 & tier 3 cities.
Secretary-General and Executive Head of the Indian Steel Association said, "We got a pro-growth budget with a significant push to capital expenditure to boost the economy. The Budget will steer India toward sustainable development, with a strong focus on infrastructure spending and financial support to MSMEs."
CMD, Kamdhenu Ltd, said: "The announcements related to 50 additional airports, heliports, water aerodromes, and advanced landing zones to be revitalized will provide the push for the infrastructure sector, which in turn will create steel demand."