Government vows to ensure availability of key raw materials like iron ore, coking coal and natural gas to the steel sector at competitive rates as it envisions creation of 300 MnT installed capacity by 2030-31, at an estimated investment of INR 10 lakh crore, to achieve self-sufficiency under a new steel policy.
While a committee has already been set up in the steel ministry to put a cap on the iron ore prices, under the National Steel Policy (NSP), 2017 the government hopes to increase availability of domestic washed coking coal to reduce import reliance by 2030-31 from 65% now, aimed at cost-effective production.
The government also intends to provide policy support and guidance to private manufacturers, MSME steel producers, CPSEs for capacity additions so as to develop globally competitive steel manufacturing capabilities and seeks to enhance per capita domestic steel consumption, lagging far behind the global average, to 158 Kg from 61 Kg now.
Major segments such as infrastructure, automobiles and housing will be targeted for enhanced consumption. The policy also envisages to domestically meet the entire demand of high grade automotive steel, electrical steel, special steels and alloys, which comprise around 80% of the total imports, for strategic applications.
Recognising the role of the secondary producers, the policy stipulates that adoption of energy efficient technologies in the MSME steel sector will be encouraged to improve the overall productivity and reduce energy intensity.
Research and development is also expected to receive an impetus as the government proposes to establish Steel Research and Technology Mission of India (SRTMI) with the mandate to spearhead R&D of national importance in iron & steel sector by utilising tripartite synergy amongst industry, national R&D laboratories and academic institutes.
The new policy, which will subsume the NSP, 2005, is expected pt provide a further impetus to the sector that has grown exponentially over the past few years to be the third largest producer of steel globally, contributing to about 2% of the country’s GDP and employing about 5 lakh people directly and about 20 lakh people indirectly.
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