Page 22 - August-2020-Issue

ARTICLE

and enhance the availability of private investment of Rs.13000 a higher prospect of being com-
a whole gamut of capital goods, crores. The Airport terminals and pleted faster than fresh projects
consumer durable goods and associated buildings are to be ex- and have a quicker deliverability.
packaging goods to cater to the clusively built by steel structural It is observed that steel intensity in
infra, engineering and household (light PEB, Hollow tubular sec- Infra investment in India is much
demand tions, TMT, Cold formed steel). lower compared to what is hap-
For special interest for steel indus- The recent policy guidelines have pening in China, South Korea and
try, mention may be made of the opened coal mining for commer- Japan. Only 6-7 per cent of GDP is
provision under PMAY scheme to cial purposes, done away with spent on infra investment in India
make Affordable Rental Housing captive mining process, intro- compared to 14 per cent of GDP
Complexes (ARHC) that can be duced lease transferability, in- in China. In national Highways,
provided under PPP mode to the centivised exploration of mines, India uses 290-300 tonnes of
migrant labour/urban poor at af- encouraged coal gasification pro- steel against 700 tonnes used by
fordable rent which can also be grammes to reduce dependence China as CRCP (Continuously
provided by incentivising the on fossil fuel Reinforced Concrete Pavement)
manufacturing units, industries, roads are plenty in China in the
Associations to make ARHC on Lessons for Steel Industry interest of strength, low mainte-
their private land. The Credit nance, faster construction and en-
linked subsidy scheme (CLSS) The post lockdown period must vironment friendliness.
for the middle-income group (an- focus on commencement of big According to the National
nual income Rs 6-18 lakhs) has ticket infra projects. Among these, Infrastructure Pipeline (revised)
been extended by 1 year, addi- the priority needs to be accorded report the government needs to
tional houses would be built for to the projects already com- invest around Rs.80 lakh crores
2.5 lakhs families in FY21. menced and in which the part of on Infrastructure sector compris-
investment has been made. Many
It is a good opportunity for steel road projects, Metro, DFC fall in ing of Energy, Roads, Railways
industry to promote steel inten- this category. These projects have including Metro and DFC, Oil
sive construction (steel compos- and Gas pipeline, Irrigation and
ite technology that has been ac- dams, Housing, civil aviation,
cepted by the technical wing of RBI has once again brought ports, coastal waterways etc in
Urban Housing Department) in down the repo rate from 4.4 the next 5 years. All these sectors
the interest of strong building, per cent to 4.0 per cent with use steel in substantial volumes.
earthquake resistant, faster con- The fund requirement would be
struction, and design flexibility corresponding lowering of met by the Central government,
apart from being cost effective on Reverse Repo rate. Would State governments and private in-
life cycle cost considerations vis- it spruce up the demand vestment via PPP mode and FDI.
à-vis RCC structure. Additional for loanable accounts or RBI has once again brought down
Cold Chains and post harvest the repo rate from 4.4 per cent
management infrastructure in investment? Secondly, would to 4.0 per cent with correspond-
the vicinity of firm gates would the lowering of reverse repo ing lowering of Reverse Repo
need steel and Stainless steel for rate encourage the banks to rate. Would it spruce up the de-
building. Raising the FDI limit offer more volume for giving mand for loanable accounts or
for defence manufacturing un- investment? Secondly, would the
der automatic route from 49% to credit to the needy sectors lowering of reverse repo rate en-
74% would incentivise domestic instead of parking their idle courage the banks to offer more
production of defence equipment funds with RBI ?The answer is volume for giving credit to the
via FDI route to succeed Make in to be sought in the next few needy sectors instead of parking
India programme and contribute weeks, as the crisis in demand their idle funds with RBI ?The
to indigenous demand for spe- answer is to be sought in the next
cial and Alloy steel. A total num- nearly engulfs all the sectors few weeks, as the crisis in de-
ber of 12 airports is going to be of the economy. mand nearly engulfs all the sec-
built under PPP mode to attract tors of the economy.

22 KaleidOscope August, 2020