Boosting India’s Steel Industry: Key Government Initiatives

Steel Manufacturing Capacity

Boosting the Steel Industry in India: Key Government Initiatives and Focus on Jharkhand

The steel sector in India is a deregulated industry, with the government acting as a facilitator to create a conducive policy environment. Decisions regarding increased manufacturing capacity are made by the industry based on techno-commercial considerations, including raw material availability, logistics, and proximity to ports.

To support the growth of the steel sector, including in Jharkhand, the government has implemented the following measures:

1. Promotion of ‘Made in India’ Steel and Expanded Investments

• Domestically Manufactured Iron & Steel Products (DMI&SP) Policy:
  • This policy promotes the use of ‘Made in India’ steel for government procurement.
• Production Linked Incentive (PLI) Scheme for Specialty Steel:
  • Launched to encourage the domestic manufacturing of specialty steel and reduce imports by attracting capital investments.
  • Expected outcomes:
    • Investment: ₹27,106 crore
    • Additional Capacity: ~24 million tonnes
    • Direct Employment: 14,760 jobs
• Infrastructure Push in Union Budget 2024-25:
  • A capital expenditure of ₹11,11,111 crore announced, driving infrastructure expansion and increasing domestic steel consumption.

2. Improving Raw Material Availability and Reducing Costs

• Basic Customs Duty Reduction:
  • Customs duty on Ferro Nickel, a key raw material, reduced from 2.5% to zero.
• Duty Exemption on Ferrous Scrap:
  • Extended until 31st March 2026 in Budget 2024 to reduce raw material costs.
• Steel Scrap Recycling Policy:
  • Designed to enhance the availability of domestically generated ferrous scrap, promoting sustainable steel production.

3. Import Monitoring and Quality Control

• Revamped Steel Import Monitoring System (SIMS):
  • Provides granular details on steel imports to support domestic producers.
• Quality Control Orders (QCO):
  • Prohibits the import and sale of sub-standard steel products in India.
  • Ensures the availability of high-quality steel conforming to BIS standards for consumers and industries.
  • As of now, 151 Indian Standards have been notified, covering carbon steel, alloy steel, and stainless steel.

4. Infrastructure Development to Support Steel Sector Growth

• Coordination for Statutory Clearances:
  • Facilitating faster clearances for raw material access and steel production under favorable terms.
• Infrastructure in Jharkhand:
  • Current industrial infrastructure in Jharkhand includes:
    • National Highway Length: 3,633 km
    • Railway Line Length: 3,070 km
    • Installed Power Capacity: 3,002.50 MW
  • Over ₹70,000 crore worth of infrastructure projects are at various stages of commissioning in Jharkhand, supporting the growth of industries, including steel.

5. Production Linked Incentive (PLI) Scheme for Specialty Steel

• The Ministry of Steel has launched the PLI Scheme for Specialty Steel, which focuses on:
  • Promoting the manufacturing of specialty steel in India.
  • Generating employment opportunities in the steel sector.
  • Driving industrial growth in states like Jharkhand.

The Government of India is committed to creating a robust ecosystem for the steel sector through policies like the DMI&SP Policy, PLI Scheme for Specialty Steel, and infrastructure development initiatives. These efforts ensure the availability of quality steel, promote domestic manufacturing, and strengthen supply chains to boost the sector’s growth across the country, including key states like Jharkhand.

Reference: PIB

Keywords: steel industry in India, Made in India steel, PLI scheme for specialty steel, steel manufacturing policies, infrastructure for steel sector, steel production in Jharkhand, steel quality control, ferro nickel duty exemption, ferrous scrap recycling policy

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