Bhubaneswar: The Odisha government has unveiled an ambitious special subsidy scheme to boost the stainless-steel Industry in the state.
This announcement was made during the inauguration of the Global Stainless-Steel Expo 2023 (GSSE 2023) in Mumbai, further solidifying Odisha’s commitment to becoming the ‘Stainless Steel Destination’ for the world.
The GSSE 2023 event was inaugurated on Thursday by dignitaries, including Principal Secretary of Odisha’s Industries department Hemant Sharma, Managing Director of Jindal Stainless Ltd Abhyuday Jindal, GSSE Steering Committee Member and Former Secretary, Ministry of Steel, Aruna Sharma and Director of Virgo Communications and Exhibitions, Anitha Raghunath.
In his inaugural address, Abhyuday Jindal said, “It won’t be an exaggeration to say that stainless steel is omnipresent, and even for a big event like the G20, stainless steel adorned the roads. Be it the art installations in Lutyens Delhi or the security barriers, stainless steel made its presence felt. It was a historic moment to witness stainless steel reach the moon when the Chandrayaan-3 made a soft landing on the lunar surface recently.”
He also touched upon the industrial park in-the-making in Odisha by his company, and said it is the first-ever stainless steel Industrial Park in India with the vision to strengthen the industry, according to a press release.
A special report on stainless steel titled ‘India’s Amritkal’ by SteelMint was unveiled at the event. According to the report, the stainless-steel industry struggled to regain equilibrium due to the lingering impact of weakened global and domestic demand. The report underlined that the Indian Stainless-Steel industry quickly recovered by FY23, reaching about 3.5 mnt. Looking forward, SteelMint’s forecasts are intriguing, estimating demand to rise to 4.5 mnt by FY25.
In his address, Hemant Sharma said Odisha is making significant contributions to the stainless-steel sector and the minerals sector. Being the largest producer of iron ore and bauxite in India is indeed a noteworthy achievement.
Odisha’s status as the largest producer of iron ore and bauxite showcases its rich mineral resources. This positions the state as a critical player in the raw materials supply chain for various industries, including steel and aluminium.
He announced Jindal Stainless steel Plant is a massive 1.2 MTPA stainless steel plant and proposed plant expansion to 3.2 MTPA by Jindal Stainless Limited (JSL) in Odisha is a game-changer. This investment represents a substantial commitment to the stainless-steel sector in the state and will likely contribute to its growth and prominence in the industry.
Special Subsidy Scheme by the Odisha Government :
- 20% Capital Investment Subsidy: Under this scheme, businesses investing in the stainless steel downstream sector in Odisha will receive a substantial 20% Capital Investment Subsidy on their investments. This lucrative incentive is designed to stimulate growth and innovation within the sector.
- Electricity Duty Exemption: Businesses operating in the stainless steel downstream sector can avail a power tariff subsidy of Rs2/unit and 100% exemption on electricity duty, significantly reducing operational costs and enhancing the overall competitiveness of the industry.
- ESI/EPF Reimbursement: To further support the workforce and promote job creation, the scheme provides for a 100% reimbursement of Employee State Insurance (ESI) and Employee Provident Fund (EPF) contributions for up to five years.
- Land Allocation: The Odisha Government has made a commitment to allocate land offering businesses an exceptional opportunity to establish or expand their operations in a world-class industrial environment.
Speaking at the event, Anitha Raghunath said that the demand for stainless steel in India is expected to grow at an average of 9 to 10 per cent per annum over the next few financial years, doubling the growth rate of 4.5 per cent in the last five financial years.
