Industry Odisha Bureau, Oct 12: A draft steel policy targets 604 million tonnes of capacity, up from about 220 million. It also seeks cleaner production, more rail freight and greater technology self-reliance.
India’s draft National Steel Policy targets 604 million tonnes of steelmaking capacity by 2047. Current capacity stands at about 220 million tonnes. The draft was released late on Saturday.
It aims to lift per capita steel consumption to 302 kg from 116 kg. Exports are targeted at 45 million tonnes over the next two decades. These are policy goals, not confirmed investments or outcomes. Installed capacity also differs from actual production.
The draft says the sector must move beyond capacity-led growth. It calls for value creation, technological progress and tighter integration across the value chain.
The policy seeks wider steel use in infrastructure, housing and transport. Renewable energy and emerging manufacturing sectors are also in focus. These sectors would anchor long-term domestic demand for steel.
Decarbonisation forms a major pillar of the draft. The ministry aims to cut average emissions intensity from 2.54 to about 1.54. Both figures are tonnes of carbon dioxide per tonne of crude steel.
Intensity measures emissions per tonne, not total emissions. Absolute emissions could still rise as output grows. Proposed tools include higher scrap use and hydrogen-based direct reduced iron. Biochar, gasified coal substitution and carbon capture also feature. The targets align with India’s net-zero goal.
The draft leans on the PM Gati Shakti platform for planning. It would map iron ore, coal, manganese ore and other inputs against consumption centres. That mapping aims to identify optimal sites for new plants and expansions.
Logistics would shift sharply towards rail. Railways’ share of iron ore movement is projected to rise to about 49% from 42%. Roads’ share would fall to around 9% from 28%.
Slurry pipeline capacity would top 299 million tonnes a year by 2047. Such pipelines move ore mixed with water.
For finished steel, rail’s share is projected to climb to 62% from 40%. Road transport’s share would drop to 35% from 59%. The draft says the shift would ease road congestion and delays.
Technology self-reliance is another priority. The draft backs domestic production of steelmaking technology and capital goods. It also wants more high-value steel made at home. Secondary steelmakers and MSMEs would be modernised.
Artificial intelligence, automation, research, safety and workforce skills also receive attention. The draft further seeks to block sub-standard steel imports.
Abroad, India plans strategic partnerships with emerging economies. These aim to secure critical raw materials and technology transfers. Memoranda of understanding already exist with Russia, Japan, South Korea, Brazil and Indonesia.
Future deals could include long-term offtake agreements and overseas mining acquisitions. Beneficiation plants and joint ventures are also possible. Memoranda, however, are not binding investment commitments.
The draft charts a long road for India’s steel sector. Reaching 604 million tonnes would require sustained investment and coordinated infrastructure. Cleaner technologies must also scale up across the industry. As a draft, the policy may still change before adoption. Its delivery will hinge on implementation as much as targets.
