Industry Odisha Bureau, Oct 18: Steel industry leaders have welcomed the draft National Steel Policy 2047. It targets 604 million tonnes of crude steel capacity by 2047. It stresses recycling, value addition and lower emissions per tonne.*
Steel industry leaders have backed the government’s new steel policy draft. They expect it to promote a circular economy and boost domestic value addition. The draft National Steel Policy 2047 also emphasises decarbonisation.
Its headline goal is crude steel capacity of 604 million tonnes by 2047. Capacity measures what plants could produce, not what they will actually output. The government says the plan should sharpen competitiveness and tackle import pressures. Reaching it would need heavy investment, reliable minerals and supporting infrastructure.
Circular manufacturing features strongly in industry reactions. Refractories are heat-resistant materials that line furnaces and ladles in steel plants. Many are made from magnesite, a magnesium-bearing mineral. Pankaj Malhan, MD and CEO of RHI Magnesita India, welcomed this focus. He cited its recognition of refractory recovery and magnesite supply security. He said the approach supports a resilient, competitive steel ecosystem. Recycling spent refractories can cut reliance on freshly mined material. Malhan said the industry remains committed to recycling and investing in India.
Others focus on what happens beyond the blast furnace. Harsh Bansal, managing director of BMW Industries, said the draft considers every industry aspect. He highlighted its push for value-added and coated steel, and for secondary producers. Coated steel carries protective layers, such as zinc, that add durability and value. Secondary producers are smaller mills that often use scrap or sponge iron.
Deepak Kumar, managing director of PS Raj Steels, stressed downstream needs. He said MSMEs hold nearly 60% of flat stainless steel capacity. Support for clusters and smaller firms, he argued, matters as much as big-plant expansion. Shared infrastructure, logistics and raw-material access often decide such firms’ competitiveness.
Kamdhenu Group chairman and managing director Satish Kumar Agarwal sees broad openings. He cited capacity expansion, raw-material security, modernisation, speciality steel and decarbonisation. Together, he said, they open opportunities for integrated and secondary producers alike. Integrated plants make steel from iron ore, usually through blast furnaces.
The climate target is equally significant. Deloitte India partner Rajib Maitra said the draft seeks lower emission intensity in four phases. It aims to cut 2.54 tCO₂/tcs to about 1.54 by 2047. The unit means tonnes of carbon dioxide per tonne of crude steel. That implies a reduction of roughly 39% per tonne. With output rising, however, total emissions need not fall.
The draft also projects finished steel demand of 505 million tonnes by 2047. Per capita consumption would reach 302 kg, and exports 45 million tonnes. Infrastructure, housing, transport and manufacturing typically drive such demand. Export ambitions will hinge on quality, cost and carbon rules in overseas markets.
Industry backing does not guarantee delivery. Capital access, energy costs and technology adoption will test the targets. So will steady supplies of iron ore, coking coal and magnesite. The policy remains a draft, and its impact will depend on execution.
