Building Confidence in Business
– Metallurgy, textile and fermentation sectors registered proposed investments of Rs55,947 cr, Rs2,634 cr and Rs2,571 cr respectively
– In addition, 79 IEMs with an investment of Rs35,431 cr have reported IEM implementation
– NIP of $1,000,000,000 in 2022-25, driving demand for steel
New Delhi: No fewer than 19 Industrial Entrepreneur Memoranda (IEM) were filed in March with proposed investments of Rs 73,333 crore and an estimated creation of 46,018 jobs. Odisha, Maharashtra and Rajasthan were the top states in terms of proposed investment of Rs54,842 crore, Rs 4,981 crore and Rs2,487 crore, respectively, according to official sources.
The investment intentions reflect the preference for metallurgical, textiles and fermentation industries, with proposed investments of Rs55,947 crore, Rs2,634 crore and Rs2,571 crore, respectively.
Fermentation was also among the top sectors in February, attracting proposed investments of Rs 1,289 crore.
Additionally, 79 IEMs with an investment of Rs35,431 crore reported IEM implementation through online filing in March, sources told Bizz Buzz.
The EY Professional Services Network is convinced that the steel sector alone can stimulate the entire economy: “The Indian steel sector has been dynamic and has been growing at a CAGR of around 5% to 6% in YoY With a V-shaped demand recovery post Covid, policy announcements made by the government across all sectors including rail, road, aviation, gas pipelines, housing and changes in the equations global supply and demand, have driven the industry’s record production and growth.”
His optimism is sparked by the central government’s plan to spend $1 trillion between 2022 and 2025 under the National Infrastructure Pipeline (NIP), which is expected to boost demand for steel. “However, this must be enabled through government policies and guidelines on project governance to reduce delays, increase steel-based construction, streamline mining levies and import duties, and strengthen the infrastructure capabilities to produce and deliver the planned production,” EY added. For its part, the government has proposed a Production Linked Incentive (PLI) scheme of Rs 6,322 crore for special steel. He even extended the April 28 application deadline by more than a month to May 30. He also changed the scheme to benefit smaller players. Industrial fermentation, which is a chemical engineering that uses a chemical modification induced by a living organism or an enzyme, also attracts investment. It has developed with the biotechnology sector with which it is closely linked.