India targets 600 MT steel capacity, 500 MT consumption by 2047

The government is preparing a new National Steel Policy (NSP) to provide a roadmap for expanding India’s steel capacity to more than 600 million tonnes by 2047 while increasing domestic consumption and the share of value-added and special steel.

Steel Secretary Sandeep Poundrik said the draft policy is expected to be placed in the public domain for stakeholder feedback within a week. Speaking on the sidelines of a Confederation of Indian Industry (CII) event in New Delhi, he said the proposed NSP would establish a framework for the steel sector through 2047.

According to a presentation by the official, the policy targets 604 million tonnes of steel capacity and domestic consumption of more than 500 million tonnes by 2047.

New policy to extend steel roadmap to 2047

India’s existing National Steel Policy, introduced in 2017, set a target of 300 million tonnes of steel manufacturing capacity by 2030. The new policy will extend the sector’s planning horizon to 2047 as part of the government’s Viksit Bharat objectives.

Of the projected 500 million tonnes-plus domestic consumption by 2047, around 45 million tonnes is expected to be accounted for by exports, either directly or through steel embedded in manufactured goods.

The expansion in production is also expected to increase demand for raw materials. India could require more than 700 million tonnes of iron ore annually by 2047, according to the projections outlined by the Steel Ministry.

Measures proposed to address steel imports

The proposed policy is expected to include measures to discourage imports of cheap and sub-standard steel. These could include trade instruments such as safeguard measures and anti-dumping duties.

The policy is also expected to propose a ₹5,000 crore scheme for small steel producers, with incentives linked to reducing carbon emissions from production.

For larger steel producers, the Carbon Credit Trading Scheme (CCTS) is expected to be notified soon. The government is also studying the impact of quotas imposed by the European Union on Indian steel exports.

Steel Industry Safety Council constituted

Separately, the government has notified the constitution of a Steel Industry Safety Council following accidents at steel plants, including facilities operated by RINL and SAIL.

The council will be chaired by the Steel Secretary and will include chairpersons and managing directors of integrated steel plants, along with representatives of associations representing smaller steel producers.

Current capacity and production

India’s crude steelmaking capacity currently stands at around 222 million tonnes per annum. This keeps the industry on course to meet the existing National Steel Policy target of 300 million tonnes per annum by 2030.

During April-July of the current financial year, finished steel production increased 4% year-on-year to 54.3 million tonnes from 52.2 million tonnes during the corresponding period a year earlier, according to Ministry of Steel data.