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Home Economy

Purvodaya-Accelerated development of Eastern India

January 27, 2020
in Economy
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Source: PIB

Minister of Petroleum and Natural Gas & Steel Shri Dharmendra Pradhan launched PURVODAYA: Accelerated development of eastern India through integrated steel hub in Kolkata, West Bengal

Aim of Purvodaya

Purvodaya in the steel sector is aimed at driving accelerated development of Eastern India through the establishment of an integrated steel hub. 

The potentiality of Eastern States

  • Eastern states of India (Odisha, Jharkhand, Chhattisgarh, West Bengal) and Northern part of Andhra Pradesh collectively hold ~80% of the country’s iron ore, ~100% of coking coal and a significant portion of chromite, bauxite and dolomite reserves. 
  • There is the presence of major ports such as Paradip, Haldia, Vizag, Kolkata, etc., with >30% of India’s major port capacity. 
  • In India’s march towards a $5 trillion economy, the 5 Eastern states can play a major role where the steel sector can become the catalyst. 
  • This Eastern belt has the potential to add more than 75% of the country’s incremental steel capacity envisioned by the National Steel Policy. 
  • It is expected that out of the 300 MT capacity by 2030-31, over 200 MT can come from this region alone, driven by Industry 4.0.

About Integrated  Steel Hub

The proposed Integrated Steel Hub, encompassing Odisha, Jharkhand, Chhattisgarh, West Bengal, and Northern Andhra Pradesh, would serve as a torchbearer for socio-economic growth of Eastern India. 

The objective of this hub would be to enable swift capacity addition and improve the overall competitiveness of steel producers both in terms of cost and quality. The Integrated Steel Hub would focus on 3 key elements:

  1. Capacity addition through easing the setup of Greenfield steel plants
  2. Development of steel clusters near integrated steel plants as well as demand centres. 
  3. Transformation of logistics and utility infrastructure which would change the socio-economic landscape in the East            

These elements would be supported through additional enablers such as ensured availability of raw materials, presence of supporting industries such as capital goods and well-established avenues for skill development.           

Significance 

Growth of the steel industry through such a hub would lead to significant employment opportunities across the entire value chain and will play a significant role in the overall socio-economic growth of Eastern India, thus reducing the disparity between the East and other regions of the country.

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Tags: Prelims

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