Lok Sabha Question No. 2017 (UNSTARRED), answered on 2025-03-11
Subject: Steel Production
Ministry: STEEL
Asked by: Ms Kangna Ranaut

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA

## UNSTARRED QUESTION NO. 2017 FOR ANSWER ON 11.03.2025

## STEEL PRODUCTION

2017. MS KANGNA RANAUT:

Will the Minister of STEEL be pleased to state:

- (a) the manner in which Ministry plan to support India's goal of becoming Aatmanirbhar in steel production;
- (b) the Government would help MSMEs and small steel producers to compete in the global market; and
- (c) the manner in which the green steel and sustainability would play a role in the future roadmap for steel plant?

## ANSWER

THE MINISTER OF STATE IN THE          (SHRI BHUPATHIRAJU SRINIVASA VARMA) MINISTRY OF STEEL

(a)&(b):  Steel  is  a  de-regulated  sector  and  the  government  acts  as  a  facilitator  by creating a conducive policy environment for the development of the steel sector. The government  has  taken  the  following  measures  to  improve  raw  material  security, enhance R&D activities, reduce import dependence, and cost of production to support India's  goal  of  becoming Aatmanirbhar in steel production  and help MSMEs, small steel producers:-

- i. Promotion of 'Made in India' Steel and Expanding Investments:-
- a.  Implementation of Domestically Manufactured Iron & Steel Products (DMI&SP) Policy for promoting 'Made in India' steel for Government procurement.
- b.  Launch  of  the  Production Linked  Incentive  (PLI)  Scheme  for Specialty  Steel to promote  the  manufacturing  of  'Specialty  Steel'  within  the  country  and  reduce imports by  attracting  capital  investments.  The  anticipated  additional  investment under  the  PLI  Scheme  for  Specialty  Steel  is  Rs.  27,106  crores,  downstream capacity creation of around 24 million tonnes, and a direct employment generation of 14,760.
- c.  A capex of Rs.11,11,111 crore, announced in the Union Budget FY 2024-25, has given  thrust  to  infrastructure  expansion  which,  in  turn,  has  increased  steel consumption.

- ii.      Improve Raw Material Availability and Reduce Raw Material Cost:-
- a. Reduction in the Basic Customs Duty on Ferro Nickel, a raw material from 2.5 percent to zero, making it duty-free.
- b. Extension of duty exemption on ferrous scrap up to 31 st  March, 2026, in the Budget 2024.
- c.  Notification  of  Steel  Scrap  Recycling  Policy  to  enhance  the  availability  of domestically generated ferrous scrap.
- iii.     Import Monitoring and Quality Control:-
- a. Revamping of Steel Import Monitoring System (SIMS) for effective monitoring of imports to provide granular details on imports to the domestic steel industry.
- b.  Introduction  of  Steel  Quality  Control  Orders  thereby  banning  sub-standard/ defective steel products in the domestic market as well as imports to ensure the availability of quality steel to the industry, users, and public at large. As per the Order, it is ensured that only quality steels conforming to the relevant BIS standards  are  made  available  to  the  end  users.  As  of  date,  151  Indian Standards are notified under the Quality Control Order covering carbon steel, alloy steel, and stainless steel.

(c)   Ministry of Steel has released a comprehensive Report titled 'Greening the Steel Sector in India: Roadmap and Action Plan' which provides the future roadmap for green steel and sustainability, towards net-zero target by 2070.

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