State-owned steel Public Sector Undertakings (PSUs) have maintained their total investment allocations at ₹10,325 crore in the interim budget for fiscal 2024–25, mirroring last year’s figures. According to recently released budget documents, this marks a slight dip from the revised estimate of ₹10,358 crore in 2023–24 .
A closer examination reveals divergence among steel PSUs. The National Mineral Development Corporation (NMDC) is set to increase its proposed capital investment by 24 per cent, raising it to ₹2,200 crore. This expansion contrasts sharply with MSTC Ltd, which plans a steep 90 per cent cut, reducing its investment to just ₹10 crore.
KIOCL Limited is witnessing the most significant growth, with its investment rising from ₹146.8 crore to ₹237 crore an impressive surge. Meanwhile, the Steel Authority of India Limited (SAIL) has modestly increased its investment to ₹6,300 crore from ₹6,000 crore in the preceding fiscal.
Although Finance Minister Nirmala Sitharaman did not spotlight the steel sector in her interim budget speech, the decision to hold PSU investment steady underscores a cautiously optimistic stance amid broader economic fluctuations. Earlier announcements also revealed an 11 per cent rise in overall infrastructure spending, signaling potential benefits for steel demand.
Experts say that stable investment levels reflect both the government’s confidence in the steel sector and its intent to manage fiscal prudence. With India poised to sustain robust infrastructure development, the government’s continued funding for steel PSUs could be critical in supporting supply-side growth and employment. However, the mixed investment patterns among individual PSUs like NMDC and MSTC highlight varying strategic priorities, ranging from aggressive expansion to tighter resource allocation.
