National Steel Policy

India’s competitive advantage in steel production is driven by to the indigenous availability of high grade iron ore and non-coking coal – the two critical inputs of steel production. India also has a vast and rapidly growing market for steel, strong MSME sector and a relatively young work force with competitive labour costs. Therefore, to steer the steel industry to achieve its full potential while being globally competitive and to enhance steel production with focus on high end value added steel, the National Steel Policy 2017 was introduced.

Objectives of this Policy

• Increase per Capita Steel Consumption to 160 Kgs by 2030-31
• To domestically meet entire demand of high grade automotive steel, electrical steel, special steels and alloys for strategic applications by 2030-31
• Increase domestic availability of washed coking coal to reduce import dependence on coking coal from 85% to about 65% (approximate) by 2030-31.
• To increase global presence of value added/ high grade steel
• Encourage steel industry to be a world leader in energy efficient steel production in an environmentally sustainable manner.
• To substantially reduce the carbon foot-print of the steel industry

Strategies Involved

• Make an increase in domestic steel demand;
• Increase steel capacity;
• Assure the proper availability of raw materials
• Coordinate with state governments to ensure timely availability of litigation-free lands water & power
• Adequate infrastructure growth like railways, roadways, power generation etc. especially in the three eastern states of Odisha, Chhattisgarh and Jharkhand.
• Proper implementation of Indian Standards set by Bureau of Indian Standards (BIS) for iron and steel products produced in the country
• Encourage research institutes to develop less resource intensive and less energy intensive steel making technologies.
• Enhanced technological efficiency
• Facilitate auction of non-coking coal and iron ore exclusively for steel/sponge iron sector in MSME Steel Sector.
• Value addition in Stainless Steel, Alloy & Special Steel
• To reduce the financial risks encouraging steel industry to reduce capital costs and remain innovative in developing appropriate structure to minimize debt and service equity.
• For better environment management, Ministry of Steel has submitted the Intended Nationally Determined Contributions (INDC) for reducing GHG emissions in iron & steel sector by reducing CO₂ emission of 2.2 – 2.4 tonnes per tonne of crude steel in BF-BOF route and 2.6 – 2.7 tonnes per tonne of crude steel in DRI-EAF route by 2030.
• Also focus on High - End Research, for this Steel Research & Technology Mission of India (SRTMI) is established.