Government is formulating comprehensive outlook for global strategy on steel

The Ministry of Steel is formulating a comprehensive outlook for global strategy on steel. In its year-end review for 2024, the ministry says this strategy focuses on raw materials, investments, technology, and exports to align India’s steel sector with international best practices.

Partnerships and international collaborations are being explored to position India as a global leader in steel production and exports.

In the Year-End Review, the ministry marks significant strides in the sector enhancing sustainability, fostering domestic manufacturing, and ensuring the quality of steel in India.

The ministry has focused on initiatives like the Green Steel Mission, the Production Linked Incentive (PLI) Scheme for Specialty Steel, and measures for standardization and quality control.

The Ministry of Steel is spearheading the ‘Green Steel Mission,’ with an estimated outlay of Rs15,000 crore, to promote decarbonization in the steel industry and advance the country’s net-zero goals.

The mission includes a PLI Scheme for Green Steel, incentives for renewable energy use, and mandates for government agencies to prioritize purchasing green steel.

Supporting this initiative, the National Green Hydrogen Mission, launched by the Ministry of New and Renewable Energy, has allocated Rs455 crore for pilot projects in the steel sector.

Key developments under the Green Steel Mission include the release of a ‘Roadmap and Action Plan’ for decarbonizing the sector, the launch of the Taxonomy for Green Steel to standardize low-emission steel, and the Steel Scrap Recycling Policy aimed at resource efficiency.

Additionally, pilot projects for Direct Reduced Iron (DRI) production using 100 per cent hydrogen are underway, demonstrating India’s commitment to green innovation in steel production.

To reduce imports and strengthen domestic steel manufacturing, the government has implemented the PLI Scheme for Specialty Steel.

This initiative has attracted a committed investment of Rs27,106 crore, generating 14,760 direct jobs and facilitating the production of 7.90 million tonnes of speciality steel. As of October 2024, investments of Rs17,581 crore have already materialized, creating over 8,660 jobs.

The Ministry of Steel has undertaken several policy measures to create a conducive environment for increased steel production and consumption.

The extension of duty exemptions on ferrous scrap until March 2026 and the reduction of Basic Customs Duty on Ferro-Nickel have bolstered the domestic stainless steel industry.

While India has sufficient reserves of iron ore and non-coking coal, coking coal imports remain significant due to limited domestic supply.

Efforts to diversify sources of coking coal include partnerships with countries like Russia and exploration missions to Mongolia.