Reducing logistics cost vital for steel ind to achieve Atmanirbhar Bharat: MoS Steel

July 2, 2020: Faggan Singh Kulaste, minister of state for steel, on Wednesday noted that reducing the logistics cost is important for the steel industry to achieve Prime Minister Narendra Modi’s vision of Atmanirbhar Bharat and assured that the government is taking all necessary steps to ensure that.

Addressing FICCI webinar 'Supportive Logistics for Indian Iron & Steel Industry. Ek Kadam Atmanirbharta ki Aur', Kulaste said that as per the National Steel policy, we need to create a capacity of 300 million tonnes by 2030-31 and 255 million tonnes of crude steel to be produced. "We would be needing large infrastructure to handle this. To promote the PM's vision of Atmanirbhar Bharat and Make in India, the industry must focus on reducing the production cost and the overall cost including the logistics costs.”

"The government is already working on multimodal infrastructure projects like Bharatmala, Sagarmala and Dedicated Freight Corridors in the logistics sector which will benefit the industry. Once these projects are completed, both production cost and time will be reduced," he added.

Cluster-based industry approach
Kulaste said that more and more down-stream companies should come up near the steel plant like DRI, pellet and sponge iron plant. This will also help in reducing the logistics cost. "We must emphasize on cluster-based industry approach, adopt newer technologies along with reducing inventory and other costs. The industry must come forward in ensuring these", he added.

In order to realize PM's vision of #AtmanirbharBharat, we need to reduce production cost by focussing on cluster-based planning: Mr @fskulaste, Minister of State for Steel, Government of India at #FICCIWebinar on 'Supportive Logistics for Indian Iron & Steel Industry. pic.twitter.com/zapeiSesBx

— FICCI (@ficci_india) July 1, 2020

Steel and iron under Dedicated Freight Corridor
Rasika Chaube, additional secretary, ministry of steel said that the government is aware of the challenges faced by the steel industry and is taking appropriate steps to overcome these. "The ministry is working with all concerned ministries to ensure that the industry and sector get the benefit. Steel and iron ore are important components under the Dedicated Freight Corridor project. The government has already announced the national waterways project and we have mapped the state-wise industry requirement for logistics & are working towards the same," she added.

Pankaj Satija, senior member, steel committee, FICCI and chief regulatory affairs, Tata Steel said “It is important for the government to expedite the process of road and railway expansion to meet the future demands. As we are moving towards lower-grade ore, the slurry pipeline is the only viable option.”

Rail freight concession for iron ore
Alok Sahay, convener, steel logistics sub-committee, FICCI and ED (commercial), SAIL said “There is a need for rail freight concession on the long-distance movement of iron ore. He also highlighted the challenges faced by the industry in rail transportation & suggested remedial measures for the same.

R K Pandey, member (projects), NHAI said that the government is coming up with new dedicated greenfield corridors under the Bharatmala project which will help reduce the logistics cost.

S K Ahirwar, joint secretary, ministry of commerce & industry said that the ministry is already in the process of introducing the new logistics policy along with a dedicated National Logistics Portal.