India Aims for 604 MT Steel Capacity by 2047 with New Policy
The Indian government has unveiled the draft National Steel Policy 2047, targeting a significant increase in steel production and consumption.
The policy sets a target of 604 million tonnes of crude steel capacity by 2047.
Finished steel demand is projected to reach 505 million tonnes, with per capita consumption at 302 kg.
Decarbonisation and technological advancements are key focuses of the new policy.
The Indian government has announced the draft National Steel Policy 2047, aiming to elevate the country's crude steel production capacity to 604 million tonnes by the year 2047. This initiative is part of a broader strategy to enhance the competitiveness of the steel industry while addressing significant import challenges, particularly in coking coal.
According to the draft, the demand for finished steel is anticipated to rise to 505 million tonnes, with per capita consumption expected to increase to 302 kg. The policy also aims to boost steel exports to 45 million tonnes. Currently, raw materials account for approximately 65-70% of the costs associated with steel production, and while India is self-sufficient in iron ore, it relies heavily on imports for coking coal, sourcing nearly 92% from abroad.
To mitigate import dependence, the policy outlines several strategies, including the expansion of domestic mining operations, development of washery facilities, and long-term supply agreements. It also emphasizes the importance of artificial intelligence in optimizing coal blends. Additionally, the policy will focus on other essential raw materials like manganese and limestone to ensure sustainable resource availability for the steel sector.
The secondary steel sector, which consists of around 2,550 units and contributes nearly 47% of crude steel production capacity, will receive support for improved access to raw materials, technology upgrades, and skill development initiatives. A significant aspect of the policy is its commitment to decarbonisation, as the steel industry is responsible for about 10-12% of India's CO2 emissions. The NSP Vision 2047 aims for a phased transition to achieve net-zero emissions by 2070 through enhanced energy efficiency and increased use of renewable energy.
Looking ahead, the government plans to foster international cooperation in the steel sector, focusing on raw material diversification and technology collaboration. As the second-largest steel producer and consumer globally, India is poised to strengthen its position in the international market. The new policy builds on the 2017 National Steel Policy, which set a target of 300 million tonnes by 2030, reflecting the evolving landscape of the steel industry and the need for modernization and innovation.
