Business & Economy

Cabinet approves National Steel Policy 2017 aimed at making sector globally competitive

NetIndian News Network

New Delhi, May 3, 2017

The Union Cabinet today gave its approval for the National Steel Policy (NSP) 2017,  which seeks to enhance domestic steel consumption, ensure high quality steel production and create a technologically advanced and globally competitive steel industry.
"The new Steel Policy enshrines the long term vision of the Government to give impetus to the steel sector," an official press release said.
According to the release, NSP 2017 aims to create self-sufficiency in steel production by providing policy support and guidance to private manufacturers, MSME steel producers, CPSEs; encourage adequate capacity additions; development of globally competitive steel manufacturing capabilities; cost-efficient production; domestic availability of iron ore, coking coal & natural gas; facilitating foreign investment; asset acquisitions of raw materials; and enhancing the domestic steel demand.
The policy projects crude steel capacity of 300 million tonnes (MT), production of 255 MT and a robust finished steel per capita consumption of 158 kgs by 2030 - 31, as against the current consumption of 61 kgs. The policy also envisages to domestically meet the entire demand of high grade automotive steel, electrical steel, special steels and alloys for strategic applications and increase domestic availability of washed coking coal so as to reduce import dependence on coking coal from about 85% to around 65% by 2030-31.
The release said the Indian steel sector had grown rapidly over the past few years and presently it is the third largest steel producer globally, contributing to about 2% of the country's GDP.  India has also crossed 100 MT mark for production for sale in 2016-17.
The New Steel Policy, 2017 aspires to achieve 300MT of steel-making capacity by 2030. This would translate into additional investment of Rs. 10 lakh crore by 2030-31.
The policy seeks to increase consumption of steel and major segments are infrastructure, automobiles and housing. 
It recognizes the potential of MSME steel sector. The Policy stipulates that adoption of energy efficient technologies in the MSME steel sector will be encouraged to improve the overall productivity & reduce energy intensity.
The Steel Ministry will facilitate R&D in the sector through the establishment of Steel Research and Technology Mission of India (SRTMI). The initiative is aimed to spearhead R&D of national importance in iron & steel sector utilizing tripartite synergy amongst industry, national R&D laboratories and academic institutes.
The Ministry through policy measures will ensure availability of raw materials like Iron ore, Coking coal and non-coking coal, Natural gas, and so on at competitive rates.
"With the roll out of the National Steel Policy-2017, it is envisaged that the industry will be steered in creating an environment for promoting domestic steel and thereby ensuring a scenario where production meets the anticipated pace of growth in consumption, through a technologically advanced and globally competitive steel industry. This will be facilitated by Ministry of Steel, in coordination with relevant Ministries, as may be required," it said.