DECEMBER 20248INDIA'S FINISHED STEEL IMPORTS HIT 7-YEAR HIGH OF 5.7 MILLION METRIC TONSE-3W SCHEME HITS 70 PERCENT SUBSIDY RECIPIENTS, LIMIT APPROACHING FOR E-2WSBuyers of cargo electric three-wheelers (e-3W) may no longer benefit from government subsidies under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive) scheme for this fiscal year, as the subsidy targets have already been met shortly after the scheme's launch. The Ministry of Heavy Industries (MHI) had set a goal to incentivize 80,546 large e-3W (L5 category) units for 2024-25, but sales have surpassed this India's imports of finished steel hit a peak of 5.7 million metric tons in April-October, the highest in seven years. India, the second largest producer of crude steel worldwide, transitioned into a net importer of the metal in the fiscal year ending on March 31, 2024, and target, reaching over 82,000 units. According to official data, 79,974 e-3W sales were reported as of November 7, with companies expected to submit the necessary documents to claim subsidies within the next three months.Similarly, sales of electric two-wheelers (e-2W) are nearing the scheme's saturation limit of one million units for the fiscal year, with eligible manufacturers reporting sales of over 690,000 units. On the other hand, sales of smaller e-3W vehicles, such as e-rickshaws and e-carts, remain significantly below targets, with only 1,214 units sold against a goal of 43,371 units for the current fiscal year.The PM E-Drive scheme, launched on October 1, 2024, replaced the earlier Faster Adoption and Manufacturing of Electric Vehicles (FAME) initiative, which concluded on March 31, 2024. This new scheme is designed to boost the adoption of locally manufactured EVs by offering demand incentives for categories such as e-2Ws, e-3Ws, e-ambulances, and e-trucks, alongside grants for capital asset creation, including e-buses, charging station networks, and testing agency upgrades. Sales under the previous Electric Mobility Promotion Scheme 2024 (EMPS 2024) have been absorbed into the PM E-Drive initiative. TOP STORIESthis pattern has been ongoing, with imports increasing steadily."(The) steel industry in 2024/25 by now has lost margins by 68 percent to 91 percent and are under severe stress, leading to uncertainty of funding from investors impacting the capacity expansion," the Indian Steel Association said.India's JSW Steel Ltd, the country's biggest steelmaker by capacity, last reported a third straight quarterly drop in profits, as rising imports dragged down domestic prices. After going through the presentation, the DGTR asked the Indian Steel Association to submit a formal petition to help initiate an investigation to determine whether cheap steel imports have hurt Indian steelmakers.The imposition of a safeguard duty will depend on the outcome of the DGTR investigation. Cheap imports are eating into the market share of domestic steelmakers, the Indian Steel Association said in its presentation. It said 17 percent of the hot-rolled segment, 20 percent of coated steel, and 19 percent of the plates segment have been displaced by cheap Chinese, Japanese and South Korean steel.China, Japan, South Korea and Vietnam are selling their surplus stocks to India to cash in on strong demand for steel in the south Asian country.
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