The National Steel Policy 2017

IAS Prelims 2023

India became the 3rd largest producer of steel in 2015 and is now well on track to emerge as the 2nd largest producer after China. There is significant potential for growth given the low per capita steel consumption of 61 Kg in India, as compared to world average of 208 Kg.

However, the Indian steel sector is disadvantaged due to limited availability of essential raw material such as high grade Manganese ore & Chromite, coking coal, steel grade limestone, refractory raw material, Nickel, Ferrous Scrap etc.

Due to shortage of domestic coking coal, both in terms of quantity and quality, pig iron producers/ BF operators in India have to significantly depend on import of coking coal.

national steel policy 2017

In the recent past, multiple issues have also adversely impacted the steel sector, viz. cancellations of iron ore and coal mine allocations, delays in land acquisition, environmental clearances, which led to many of the projects facing significant cost and time overruns. Additionally, companies also faced substantially increased operating costs on account of increased logistics & raw material costs and other charges.

Indian economy is rapidly growing with enormous focus on infrastructure and construction sector. In the new environment, the industry has to be steered with appropriate policy support to ensure that production of steel matches the anticipated pace of growth in consumption.

Special emphasis is needed to ensure that the industry follows a sustainable path of development in respect of environmental friendliness, mineral conservation, quality of steel products, use of technology and indigenous R&D efforts to ensure that the country can, over time, reach global efficiency benchmarks to become a world leader in steel production technology, as well as in production of high end steel.

Vision of Steel Policy

To create a globally competitive steel industry that promotes inter-sectoral growth.

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To create a self-sufficient steel industry that is technologically advanced, globally competitive and promotes inclusive growth.

Mission of the Steel Policy

Provide environment for attaining –

• Self-sufficiency in steel production by providing policy support & guidance to private manufacturers, MSME steel producers, CPSEs & encourage adequate capacity additions.

• Development of globally competitive steel manufacturing capabilities

• Cost-efficient production and domestic availability of iron ore, coking coal and natural gas

• Facilitate investment in overseas asset acquisitions of raw materials.

• Enhance domestic steel demand.

Objectives of the Steel Policy

The National Steel Policy aims at achieving the following objectives –

i. Build a globally competitive industry with a crude steel capacity of 300 MT by 2030-31

ii. Increase per Capita Steel Consumption to 160 Kgs by 2030-31

iii. To domestically meet entire demand of high grade automotive steel, electrical steel, special steels and alloys for strategic applications by 2030-31

iv. Increase domestic availability of washed coking coal so as to reduce import dependence on coking coal to 50% by 2030-31

v. To be net exporter of steel by 2025-26

vi. Encourage industry to be a world leader on energy and raw material efficient steel production by 2030-31, in a safe and sustainable manner

vii. Develop and implement quality standards for domestic steel products

NSP 2017 Covers the Following Policy Areas

a. Steel Demand

b. Steel Capacity

c. Raw Materials

d. Land, Water and Power

e. Infrastructure & Logistics

f. Product Quality

g. Technological Efficiency

h. MSME Sector

i. Value Addition in Stainless/ Alloy Steel

j. Environment Management

k. Safety

l. Trade

m. Financial Risks

n. Role of CPSEs & Way Forward

o. Focus on High-End Research: Steel Research & Technology Mission of India

Click Here to Read the Full National Steel Policy 2017