Lok Sabha Question No. 238 (UNSTARRED), answered on 2025-07-22
Subject: Expansion of Steel Production Capacity
Ministry: STEEL
Asked by: Shri P C Mohan, Shri Bhartruhari Mahtab, Shri Mahesh Kashyap

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA

## UNSTARRED QUESTION NO. 238 FOR ANSWER ON 22.07.2025

## EXPANSION OF STEEL PRODUCTION CAPACITY

238. SHRI P C MOHAN:

SHRI BHARTRUHARI MAHTAB:

SHRI MAHESH KASHYAP:

Will the Minister of STEEL be pleased to state:

- (a) the details of the scheme to enhance steel production capacity to 300 million tonnes by 2030 and the corresponding raw material requirements; and
- (b)  the  details  of  the  initiatives  to  promote  circular  economy  practices  in  the  steel industry to maximise scrap recycling and minimise environmental impact?

## ANSWER

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

- (a) 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 several measures for development of steel sector, such as:-
- i. Implementation of Domestically Manufactured Iron & Steel Products (DMI&SP) Policy for promoting 'Made in India' steel for Government procurement.
- ii. 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.
- iii. Thrust in the Union Budget to infrastructure expansion which has contributed to increasing steel consumption.
- iv. Calibration in Basic Customs Duty on Ferro Nickel and ferrous scrap imports to reduce input costs.
- v. Revamping Steel Import Monitoring System (SIMS) for monitoring of imports to provide granular details on imports to the domestic steel industry.
- vi. 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.

(b)   The initiatives taken by the Government to promote circular economy practices in the steel industry to maximise scrap recycling and minimise environmental impact are as follows:-

- i.  The Steel Scrap Recycling Policy, 2019 provides a coordination framework with various Ministries to facilitate and promote recycling of ferrous scrap generated from various sources.
- ii.  The  Ministry  of  Road  Transport  and  Highways  (MoRTH)  has  formulated  the Vehicle  Scrapping Policy  that  includes  a  system of  incentives/disincentives  for creation of an ecosystem to phase out older, unfit polluting vehicles. Under the policy,  MoRTH  has  issued  rules  for  Registration  and  Functions  of  Vehicle Scrapping  Facility  (RVSF),  which  provides  the  procedures  and  infrastructure facilities required for de-pollution and dismantling of End-of-Life Vehicles (ELVs) for further recovery of metal and other materials under environmental regulations.
- iii.  The  Government  of  India  has  notified  the  Hazardous  and  Other  Wastes (Management  and  Transboundary  Movement)  Rules,  2016  to  ensure  safe handling, storage, recycling, utilisation, treatment and disposal of hazardous and other wastes in an environmentally safe manner.
- iv.  Ministry of Environment, Forest & Climate Change has introduced the Environment Protection (End-of-Life Vehicles) Rules, 2025, which establishes a framework for managing End-of-Life Vehicles (ELVs) in an environmentally sound manner and mandates Extended Producer Responsibility (EPR), requiring vehicle producers to  meet  annual  scrapping  targets  based  on  the  type  of  vehicle  and materials recovered.
- v.  Recycling of Ships Act, 2019 has been notified by Ministry of Shipping, Ports and Waterways with aims to regulate and promote the safe and environmentally sound recycling of ships.

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