Lok Sabha Question No. 4124 (UNSTARRED), answered on 2025-03-25
Subject: Promotion of Steel Sector
Ministry: STEEL
Asked by: Shri Bidyut Baran Mahato

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA UNSTARRED QUESTION NO. 4124 FOR ANSWER ON 25.03.2025

## PROMOTION OF STEEL SECTOR

4124. SHRI BIDYUT BARAN MAHATO:

Will the Minister of STEEL be pleased to state:

- (a) the steps taken by the Government to promote the growth of the steel sector in country, and how do these initiatives align with the "Make in India" campaign to boost domestic steel production;
- (b)  the  details  of  the  financial  and  policy  incentives  being  offered  to  attract  both domestic and foreign investment into the Indian steel sector, and the expected impact of these incentives on job creation and production capacity; and
- (c) the measures taken to ensure that the growth of the steel industry is sustainable and eco-friendly, especially with regard to reducing carbon emissions and promoting green technologies in steel manufacturing?

## 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 the goal of Make in India to boost domestic steel production and job creation:-

- 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.
- c.    Union Budget has given thrust to infrastructure expansion which 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.    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.

- (c) The  measures  adopted  by  Government  to  reduce  carbon  emissions  and promoting green technologies in steel manufacturing are, as under:-
- i. Ministry has released the Taxonomy for Green Steel to provide standards for defining and categorizing the low emission steel.
- ii. Ministry of Steel has released a report titled "Greening the Steel Sector in India: Roadmap and Action Plan" in alignment with the recommendations of the 14 Task Forces constituted by this Ministry for this  purpose which  provides the future roadmap for green steel and sustainability, towards net-zero target by 2070.
- iii. Ministry of New and Renewable Energy (MNRE) has formulated National Green Hydrogen Mission for green hydrogen production and usage.
- iv. National Solar Mission launched by Ministry of New and Renewable Energy in January, 2010 promotes the use of solar energy and also helps to reduce the emission of steel industry.

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