MSME Concerns:

Micro, Small, and Medium Enterprises (MSMEs) are voicing concerns over a proposed hike in steel import duties.
They argue that the increase could significantly impact their cost structure and operational efficiency.
Impact on Costs:

A rise in import duties could lead to higher steel prices, affecting the cost of production for various industries.
MSMEs, which are already price-sensitive, may struggle with increased input costs.
Competitive Disadvantage:

MSMEs worry that higher duties could put them at a competitive disadvantage compared to larger firms and international competitors.
Increased costs may also affect their pricing strategies and market share.
Sectoral Impact:

Steel-intensive sectors, including construction and manufacturing, could see an escalation in project costs.
MSMEs involved in these sectors may face financial strain, potentially leading to reduced production or layoffs.
Government Response:

The government is considering the feedback from MSMEs and industry stakeholders.
A review of the proposed duty hike will assess its impact on various sectors and the overall economy.
Recommendations:

MSMEs are recommending that the government reconsider or modify the proposed duty increase to mitigate adverse effects.
They are also advocating for supportive measures to help them adapt to changing market conditions.
Conclusion:
The proposed increase in steel import duties has raised significant concerns among MSMEs, who fear it could lead to higher production costs and competitive challenges. As the government reviews the proposal, there is a call for balanced measures that consider the needs of small and medium enterprises.

Tata Steel announced that Odisha is set to become the company’s largest investment destination following the phase-II expansion of its Kalinganagar plant. This expansion will increase the plant’s capacity from 3 million tonnes per annum to 8 million tonnes per annum. The company has invested Rs 270 billion in this phase of the expansion and is nearing the commissioning of the new capacity at the unit, according to a press release.

The ongoing expansion at Kalinganagar is expected to significantly contribute to Tata Steel’s goal of reaching a 40 million tonnes per annum capacity in India by 2030. The company indicated that the phase-II expansion of its Kalinganagar plant in Jajpur district will also elevate Odisha to a prominent position as the largest investment destination for Tata Steel, which is the country’s oldest steel maker.

Together with the Tata Steel Meramandali plant (formerly Bhushan Steel) in Dhenkanal district, the company’s total investment in Odisha exceeds Rs 1 trillion. As Tata Steel approaches the commissioning of its expanded Kalinganagar plant, which will have a capacity of 8 million tonnes per annum, the company also sees potential to further increase this capacity to 16 million tonnes per annum in the future. This will further enhance Odisha’s role in Tata Steel’s growth journey, the release noted.

ArcelorMittal Nippon Steel India (AMNS India), a joint venture between ArcelorMittal and Nippon Steel, announced the launch of Magnelis, a steel brand renowned globally for its corrosion resistance and self-healing properties. Magnelis, ArcelorMittal’s patented brand, is now being produced in India, enhancing supply efficiency for key sectors like renewable energy and reducing the nation’s reliance on imported specialty steel products.

Dilip Oommen , CEO, AMNS India highlighted that the launch of Magnelis aligns with India’s Atmanirbhar Bharat initiative. By producing this high-performance steel domestically, the company aims to support India’s clean energy transition and enhance the country’s infrastructure. “Magnelis is the future of sustainable materials,” Oommen added, emphasising its role in building infrastructure to global standards.

Magnelis is an alloy-coated steel featuring a unique blend of zinc, aluminum, and magnesium, providing exceptional corrosion resistance and self-healing capabilities. Previously, this high-value steel was primarily imported from countries like Korea, Japan, and China, leading to lengthy delivery times.

AMNS India has invested nearly Rs 10 billion to set up a production line for Magnelis, with an annual capacity of 5 lakh tonnes at its Hazira plant in Gujarat. The company aims to secure over 50% of the domestic market share for steel used in solar projects.

(Uniindia News Service)