Capex Boosts Steel Demand & Energy Security

New Delhi, Feb 6 (PTI) The government's focus on public capital expenditure in the Budget will give a boost to steel demand in the country, while proposals for renewables and power sector financing will ensure long-term energy security, industry stakeholders said.

In her budget speech on February 1, Finance Minister Nirmala Sitharaman announced a series of measures covering infrastructure, renewables, logistics and the MSME sector.

Dhruv Goel, the CEO of market research firm BigMint, said the continued focus on public capex, especially in Tier II and III cities, provides demand visibility for the steel sector. The proposed Infrastructure Risk Guarantee Fund should also improve lender confidence.

Subrahmanyam Pulipaka, the CEO of renewable energy industry body NSEFI, said by exempting basic customs duties on sodium antimonate for solar glass and extending critical incentives to Battery Energy Storage Systems (BESS), the government has directly addressed the twin needs of domestic manufacturing scale and grid reliability.


Amit Rautela, CFO Patratu Vidyut Utpadan Nigam said the extension and expansion of customs duty exemptions on capital goods for nuclear power projects, battery energy storage systems, solar manufacturing inputs, and processing of critical minerals will significantly reduce project costs and support timely capacity addition.

Amod Anand, Co-Founder Loom Solar said the rare earth corridors will not only address a hidden but critical solar bottleneck by securing access to materials essential for high-efficiency motors, power electronics, and advanced energy systems, significantly reducing strategic dependence on China.

Satish Kumar Agarwal, Chairman and Managing Director, Kamdhenu Group said "The Rs 12.2 lakh crore capital expenditure outlay with targeted push for high-speed rail and road corridors, waterways and city economic regions among others highlights a sustained push for infrastructure led growth."

Omvir Singh Bhati, President of the All India Brick and Tile Manufacturers Federation (AIBTMF), said the "For sectors such as brick and tile manufacturing, increased urban development and housing activity, particularly in Tier-2 and Tier-3 cities, will help sustain demand while encouraging modernisation and improved efficiency across clusters." PTI ABI ABI MR

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