Steel Minister Stresses on Enhancing Domestic Steel Usage for Oil & Gas Sector

Referring to Prime Minister Narendra Modi?s clarion call for the making of an Aatmanirbhar Bharat or self-reliant India, Pradhan said that it would result in the creation of a robust manufacturing sector and a self-reliant yet globally integrated economy. Having strong linkage with the sectors like construction, oil & gas, automobiles, machinery among others, the Indian steel sector has got a fundamental role in realisation of that goal.

Pradhan said that the Indian steel sector can strive to be a major player at the global stage, only after it fulfils all the domestic requirements. ?Domestic players should rise to the occasion so that cost does not escalate in our efforts to promote localisation of supply chain,? he observed.

Speaking about the oil & gas sector, the minister said that it had seen tremendous transformation over the last six years on the back of pro-investment policies. The sector was undergoing tremendous growth with refineries, pipelines, gas terminals, storage, gas cylinders and retail outlets requiring large amounts of steel. The oil & gas sector was one of the largest end users of steel pipes and tubes, with pipelines being the major mode of transport for petroleum, oil and lubricant products. Expansion of city gas distribution network to cover 70 per cent of the country?s population, refining capacity augmentation, plan to setup 10,000 CNG stations, exploration and production (E&P) activities will all drive the demand for steel in the sector.

Urging all the organisations in the oil & gas sector to procure domestic steel rather than importing them, Pradhan said that the domestic steel manufacturers have all the capabilities to cater to the future requirements for steel in the sector. Meeting steel demand domestically and reducing import dependence will significantly enhance employment opportunities in the sector and would also give boost to growth of MSMEs in steel sector and lead them to produce more value-added products.