Govt approves new Steel Policy, aims 300 MT capacity by 2030
The Dollar Business Bureau
With an aim to give impetus to the steel sector in India, the government has approved the National Steel Policy (NSP) 2017 on Wednesday.
The new policy is aimed at achieving the country’s steelmaking capacity to 300 million tonnes by 2030, which would translate into Rs.10 lakh crore of additional investment by 2030-31.
“The Union Cabinet chaired by Prime Minister Narendra Modi has given its approval to the National Steel Policy (NSP) 2017,” the Steel Ministry said in a statement.
“The new Steel Policy enshrines the long term vision of the Government to give impetus to the steel sector. It seeks to enhance domestic steel consumption and ensure high quality steel production and create a technologically advanced and globally competitive steel industry,” the statement said.
The Union Cabinet also cleared the decks and directed that preference should be given to domestically manufactured iron and steel products for government procurements and is also applicable to all the tenders of government where the bid is still to be opened.
“The DMI&SP policy provides a minimum value addition of 15% in notified steel products which are covered under preferential procurement. In order to provide flexibility, the Ministry of Steel may review specified steel products and the minimum value addition criterion,” it said.
The policy estimates capacity of crude steel of 300 million tonnes, production of 255 million tonnes and strong per capita consumption of finished steel of 158 kg by 2030-31, compared to the existing use of 61 kg.
The NSP also envisions cutting dependence on import of coking coal from around 85% to about 65% by 2030-31, by locally meeting the overall demand of steel and enhancing the availability of washed coking coal domestically.
In an interview to The Dollar Business magazine last month, Steel Minister Chaudhary Birender Singh said, “We hope that the new National Steel Policy will encourage the industry to reach global benchmarks. Similarly, policy clarity and stability in the leasing of mines and forest clearances are also bound to benefit the sector.” (see https://www.thedollarbusiness.com/magazine/steel-industry-is-on-an-expansion-mode/46030)