New policy to give big boost to steel sector

The Cabinet meeting, chaired by Prime Minister Narendra Modi, gave its go ahead to the policy, which enshrines the long term vision of the government to give impetus to the steel sector. It seeks to enhance the domestic steel consumption and ensure high quality steel production and create a technologically advanced and globally competitive steel industry.

The policy projects crude steel capacity of 300 MT, production of 255 MT and a robust finished steel per capita consumption of 158 Kg by 2030-31, against the current consumption of 61 kg. The Indian steel sector employs about five lakh people directly and about 20 lakh people indirectly.

This is to be noted that the Indian steel sector has grown rapidly in the past few years and currently, it is the third largest steel producer globally, contributing about 2% of the country’s GDP.  India recently crossed 100 MT mark for production for sale in 2016-17.

The new policy enshrines the long term vision of the Narendra Modi government to give impetus to the steel sector.

“With the rollout of the steel policy, 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 the Ministry of Steel, in coordination with relevant ministries, as may be required,” says the policy.

According to a steel company official, the policy is quite ambitious and will encourage domestic steel companies to acquire capabilities and achieve global quality standards in production of these steel varieties. “This is inspired from the Prime Minister’s ‘Make in India’ campaign and will be a boon for the Indian economy,” he added. The official said the policy has taken a holistic approach to the issue of adding capacity, while at the same time, outlining an infrastructure framework. The Steel Ministry, as per the policy, will also facilitate research & development (R&D) in the sector through the establishment of Steel Research and Technology Mission of India (SRTMI). The initiative is aimed at spearheading R&D of national importance in the iron and steel sector utilising tripartite synergy among industry, national R&D laboratories and academic institutes.