India Expedites Visa Process for Chinese Experts in Steel Sector

India’s Steel Ministry is taking decisive steps to accelerate visa processes for Chinese technicians and experts essential for the Production Linked Incentive (PLI) projects in specialty steel. The Ministry aims to overcome delays that have hampered progress in this crucial sector, largely due to visa approval issues.

The PLI scheme for specialty steel, designed to boost domestic production and reduce imports, has faced a slow start. The expected investment for FY24 was revised to ₹16,000 crore, but actual investments fell short by 10%, reaching only ₹14,500 crore. Last fiscal, companies had committed to investing ₹21,000 crore. Despite these setbacks, the Ministry remains optimistic about the sector’s potential.

A recent review indicated that delays in visa approvals for Chinese experts, who play a vital role in the installation, maintenance, and training for high-precision equipment, significantly slowed the scheme’s implementation. Most of the specialized equipment for making specialty steel is provided and maintained by Chinese technicians, making their presence crucial for the projects.

In response to these challenges, the Steel Ministry has streamlined the visa approval process. An official mentioned that recommendations for Chinese visas are now being cleared within seven days, a significant improvement from previous months when many recommendations were not addressed promptly. This expedited process is expected to remove a major bottleneck in the implementation of PLI projects.

Under the PLI scheme, 57 Memorandums of Understanding (MoUs) have been signed, generating an investment of ₹29,500 crore and adding an additional capacity of 25 million tonnes by FY28. As of December 2023, selected companies have already invested approximately ₹12,900 crore. An additional ₹10,000 crore investment is anticipated in FY25.

The Ministry is also focused on reducing the dependency on imported precision equipment and capital goods, which are largely not manufactured in India. This reliance on imports increases costs and undermines the goal of self-reliance in the steel sector. It is estimated that about 15-20% of steel plant equipment will need to be imported, amounting to $18-20 billion, with additional spares worth $400-500 million.

To address this issue, the Ministry advocates for a consortium-based approach, where Indian companies and Public Sector Undertakings (PSUs) collaborate to develop high-end capital goods and equipment domestically. This initiative aims to create a self-sustaining ecosystem for manufacturing these critical components in India. The government has pledged support, including facilitating Intellectual Property Rights (IPRs) and possibly providing financial assistance.

Ministry officials emphasize the need for Indian steel companies to start producing their own capital equipment to reduce import dependence and enhance global competitiveness. The government’s commitment to supporting these efforts, coupled with the expedited visa process for Chinese experts, is expected to accelerate the growth and self-reliance of India’s specialty steel sector.