The Odisha Government has unveiled an ambitious Special Subsidy Scheme to boost the stainless-steel Industry within the state.
This momentous 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.
In his inaugural address, Managing Director, Jindal Stainless, Mr 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.
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. This demand contraction reverberated throughout global melt-shop production, with the first quarter of CY23 witnessing a 5% year-on-year decline to 13.66 million tonnes (mnt). China led this dip with 8.27 mnt. The report also 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.
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.
About the Special Subsidy Scheme by the Odisha Government:
1. 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.2. 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.3. 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.4. 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.