Launched in 2020, Mission Purvodaya aims to establish an integrated steel hub in Kolkata, West Bengal, to drive the rapid development of eastern India’s steel industry. With a focus on states that hold the majority of the country’s iron ore, coking coal, and other mineral reserves, the mission aims to increase steel production capacity, develop steel clusters and infrastructure, and improve the competitiveness of steel producers in the region. In this article, we will take a closer look at Mission Purvodaya and its impact on India’s steel industry.
The Need for Mission Purvodaya
Eastern India holds significant reserves of iron ore, coking coal, and other minerals, making it a potential hub for the country’s steel industry. However, the region’s steel production capacity has remained underutilized, with many steel plants operating below capacity due to a lack of infrastructure and investment. The government identified this as a major impediment to the region’s economic growth and launched Mission Purvodaya to address the issue.
The Objectives of Mission Purvodaya
Mission Purvodaya has set forth several objectives to achieve its goal of establishing an integrated steel hub in Kolkata. Firstly, it aims to increase steel production capacity in the region to meet the growing demand for steel in India and reduce the country’s dependence on imports. Secondly, it aims to develop steel clusters and infrastructure in the eastern region, such as ports, rail, road, and power infrastructure, to create a conducive environment for steel producers to operate. Thirdly, it seeks to improve the competitiveness of steel producers in the region by providing support for technology upgrades, research and development, and skill development.
Allocation of Funds for Mission Purvodaya
While Mission Purvodaya is a crucial initiative to drive the growth of eastern India’s steel industry, no specific fund has been allocated for the mission over the past three years, according to the Central Government. However, the government has been providing financial assistance to the steel industry through various schemes, such as the National Steel Policy, which aims to create a globally competitive steel industry in India.
India’s Steel Industry Growth
Despite the lack of specific funding for Mission Purvodaya, India’s steel industry has been growing rapidly in recent years. The country’s crude steel capacity has surged to 154.06 million tonnes (MT) in 2021-22 from 110 MT in 2014-15, representing a CAGR of 4.73%. Furthermore, the government has set an ambitious target of increasing India’s crude steel capacity to 300 MT by the end of this decade. The growth in steel production capacity is expected to create significant employment opportunities and contribute to India’s economic growth.
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