Mission Purvodaya: Development of Steel Sector

Introduction:

In India the use of steel is expected to rise. Indian steel industry needs to be made cost-effective and operate on new business models. Under this aim Mission Purvodaya is launched in 2020 by the Ministry of Petroleum and Natural Gas & Steel in partnership with the Government of Japan for the accelerated development of eastern India through the establishment of an integrated steel hub in Kolkata, West Bengal.

  • The focus will be on eastern states of India (Odisha, Jharkhand, Chhattisgarh, and West Bengal) and northern part of Andhra Pradesh.
  • These states collectively hold the country’s iron ore, coking coal and significant portions of chromite, bauxite and dolomite reserves.
  • The Integrated Steel Hub would focus on 3 key aspects:
    • Addition of capacity by setting up steel plants in Greenfield.
    • Cluster layout near integrated stainless steel factories.
    • Logistics and network transformation.
  • Objective: Enabling and enhancement of fast capability competitiveness in steel manufacturers, at both price and value.

Background:

  • Today, India is the 2nd largest raw steel producer worldwide. Steel production and consumption is often considered the index of development in a region.
    • The iron and steel industries are the fundamental industry as they rely on their machining for all other industries — large, medium and light. Iron and steel are a heavy industry, as both raw and finished materials are heavy with high transport costs involved.
    • Steel is an iron and carbon alloy with carbon levels of up to 2 percent. An estimated ratio of 4:2: 1 includes iron ore, coking coal and calcareous. Manganese is also used to harden steel in some amounts.

     Main Features:

  • About 75% of the nation's expanded steel capacity would be built on the Eastern Belt. In the push of India to a $5 trillion dollar economy that will catalyze the steel industry.
  • East countries will play a major role. Odisha is the country's largest producer of steel. Odisha's ores are made of hematites. The steel production of Odisha will be 100 MTPA by 2030.
  • Odisha will be Project Purvodaya's nerve center in steel. The clustering system for the entire East of India will concentrate on Kalinganagar.
  • Investments with Japan's technical competence will further improve Odisha's steel industry and socio-economic development.
  • It is the need to boost cost efficiency in the Indian steel industry, to develop new business models and to undertake research and development efforts.
  • We have to focus on India's natural resource zero exportation strategy. Government is prepared to take every step to promote value addition and to promote a vibrant, productive and globally competitive Indian Steel industry.
  • India's steel usage would increase with a wide domestic market and a rising economy. The department issued the new "Ispati Irada" logo of the Steel Ministry. We'll both collaborate with 'Ispati Irada' to increase steel use in the country and boost society.
  • Previously, Japan and India have initiated an India Japan Steel Dialog to ensure the steel industry's sustainable growth. The export of iron ore to India, especially Odisha, contributed to Japan's economic leadership. Growth of steel industry would lead to:
    • Jobs across the whole supply chain.
    • East India's Social and Economic Development.
    • Reduced inequalities between eastern and other countries.
  • The Government introduced the 2017 National Steel Policy, which is aimed at the steel consumption per capita by 2030-31 to 160 kgs. Steel is crucial to any modern economic growth and is recognized as a cornerstone of industrial production. The steel industry will focus on capacity expansion and work to increase production on demand.