India’s Steel Ministry is facilitating visa processes especially for Chinese technicians and experts who would be working on PLI projects covering speciality steel. 

Mapping the progress of the speciality steel making schemes, under PLI, would be taken up soon, sources in the know said. 

Against a revised expected investment of ₹16,000 crore for FY24, actual investments were 10 per cent lesser, or at ₹14,500 crore, the last review carried out showed. Companies / scheme beneficiaries had previously committed to invest ₹21,000 crore last fiscal. 

An official told businessline that the sectoral PLI scheme was a slow starter, and investments into the segment - which has long gestation period - got further delayed because of India - China visa issues. Most of the specialised steel making  equipment and their installation, maintenance and training for usage of these high precision equipments are  provided by Chinese technicians. Most of this was stuck. Delays in visa approvals slowed down implementation of PLI, said various scheme beneficiaries during review meetings with Ministry officials. 

“Right now most of the recommendations being made by the Steel Ministry in case of visa approvals (only for the Chinese) are being cleared within seven days or so. Earlier, this was not the case. Till a few months back, not necessarily all recommendations on Visa facilitation was being taken up or were getting a green-light,” the official said. 

Under PLI Scheme for Speciality Steel, 57 MoUs have been executed generating an investment of ₹29,500 crore and an additional capacity of 25 million tonnes (mt) by FY28. 

The last official numbers released by the Ministry state, till December (2023), selected companies have already invested about ₹12,900 crore.  In FY25, an additional ₹10,000 crore is expected to be invested. 

“Measures have been taken to expedite clearances for projects, issue standard operating procedures for Indian visa for experts, and to address the concerns of the participating companies by continuous engagement with the stakeholders,” the official said adding that “Visa durations are mostly of 6 months subject to fulfilment of certain conditions.” 

Push for Capital Goods in Steel Sector 

Interestingly, precision equipment or capital goods required for making such speciality steel offerings are mostly not made in India either. Many of these are imported. 

It is said, there is a likely import of about 15 - 20 per cent of steel plant equipment from foreign countries. 

Given the current situation, where the import content and value rises as one moves up the value chain, about $ 18-20 billion worth of imported equipment is likely to be sourced from abroad besides spares worth $400 - 500 million, it was said at a recent meeting between government and industry. 

During meeting with the industry, several senior Steel Ministry officials had pointed out to a dichotomy - push for self reliance in the sector & reducing imports would not be possible if import bill of the precision capital equipment / goods kept rising (as one moved up the value chain). It would ultimately render Indian offerings uncompetitive globally. 

Ministry officials had pitched for a consortium-based approach whereby Indian companies and PSUs come together and develop these “high end capital goods and equipment in-house” with there being “government support.”

 The Ministry had also agreed on facilitating IPRs (protecting of Intellectual

Property Rights) over such equipment-manufacturing processes if indigenously developed. 

“At some point, Indian steel companies have to start making their own capital equipments / goods. They can’t keep relying on imports. Why not some of these companies - private and state-owned ones - and institutions come together and develop these equipments or processes themselves. The government will help facilitate IPRs, provide other support may be  financial one, if required,” an official had said. 

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