Union Cabinet Clears New National Steel Policy
The Union Cabinet has given its approval for National Steel Policy (NSP) 2017 to give impetus to the steel sector. The policy aims to enhance domestic steel consumption and transform Indian steel industry into a technologically advanced and globally competitive steel industry. The new policy favours the domestic manufacturers.
- Policy aims to create self-sufficiency in steel production by providing policy support and guidance to private manufacturers, MSME steel producers, CPSEs
- Encourages adequate capacity additions and promote the development of globally competitive steel manufacturing capabilities.
- Facilitates foreign investment and aims to enhance the domestic steel demand.
- Promote cost-efficient production.
- Aims to ensure the domestic availability of iron ore, coking coal & natural gas and other raw materials at competitive prices.
- The policy envisages the achievement of crude steel capacity of 300 million tonnes (MT), production of 255 million tonnes (MT) and a robust finished steel per capita consumption of 158 Kgs by 2030 – 31. At present the current consumption is 61kgs.
- The policy aims to meet the entire demand of high-grade automotive steel, electrical steel, special steels and alloys for strategic applications through adequate local production.
- It aims to increase domestic availability of washed coking coal in order to reduce import dependence on coking coal from about 85% to around 65% by 2030-31.
- All the government tenders would give preference to domestically manufactured iron and steel products. The domestic manufacturers who import raw materials or intermediate products will be able to claim the benefits of the domestic procurement provision if they add a minimum of 15% value to the product.
- R&D in the steel sector would be carried out through the establishment of Steel Research and Technology Mission of India (SRTMI).
India is the third largest producer of steel globally. The steel sector is contributing to about 2% of the country’s GDP. India had produced 100 Million Tonnes (MT) of steel in 2016-17. Though the National Steel Policy 2005 charted out a roadmap for the sustained and efficient growth of the Indian steel industry, the recent changes in the economic order calls for a new national policy.
Categories: Business, Economy & Banking