Lok Sabha Question No. 2320 (UNSTARRED), answered on 2024-08-06
Subject: Improving Steel Production in Country
Ministry: STEEL
Asked by: Shri Tanuj Punia, Shri Imran Masood, Shri Karti P Chidambaram

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA

## UNSTARRED QUESTION NO. 2320

FOR ANSWER ON 06.08.2024

## IMPROVING STEEL PRODUCTION IN COUNTRY

2320.  SHRI TANUJ PUNIA: SHRI KARTI P CHIDAMBARAM: SHRI IMRAN MASOOD:

Will the Minister of STEEL be pleased to state:

- (a) whether the Union Government has set any target for steel production capacity in the country by 2030;
- (b) if so, the details of steps taken to increase steel production in the country;
- (c) the incentives or schemes that have been introduced to encourage the adoption of energy-efficient and innovative technologies in steel production; and
- (d) the extent to which the Government is supporting research and development efforts in the steel industry to improve product quality, efficiency, and cost optimization?

## ANSWER

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

(a)to(d):    Steel is a de-regulated sector. The Government acts as a facilitator, by creating a conducive policy environment for the development of the steel sector.  The National Steel Policy (NSP) 2017 forecasts the following steel production/ capacity for the year 2030-31: -

| Sr. No.   | Parameter                       |   Projections (2030 - 31) (in Million Tons) |
|-----------|---------------------------------|---------------------------------------------|
| i.        | Total crude steel capacity      |                                         300 |
| ii.       | Total crude steel production    |                                         255 |
| iii.      | Total finished steel production |                                         230 |

The Government as a facilitator has taken the following measures to create a conducive policy environment for improving production and consumption of steel in the country: -

- i. Implementation  of  Domestically  Manufactured  Iron  &  Steel  Products (DMI&SP)  Policy  for  promoting  'Made  in  India'  steel  for  Government procurement.
- ii. The  Government  has  launched  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 Contd…2/-

investments. The anticipated additional investment under the PLI Scheme for Specialty Steel is Rs. 29,500 crores and an additional capacity creation of around 25 million tonnes (MT) for Specialty Steel.

- iii. For Indian Steel to become globally competitive, the Basic Customs Duty on Ferro Nickel, a raw material, has been reduced from 2.5 percent to zero, making  it  duty  free,  while  duty  exemption  on  ferrous  scrap  has  been extended upto 31st March 2026, in the Budget 2024.
- iv. The Ministry of Steel has published additional 16 safety guidelines for the Iron and Steel Sector on 25.07.2024.  These cover both process and work place based  safety. These  shall  minimize  accidents  and  improve productivity through work place safety.
- v. Steel Import Monitoring System (SIMS) has been revamped and SIMS 2.0 was launched on 25.07.2024 for more effective monitoring of imports to address the concerns of domestic steel industry.
- vi. 'Make in India' initiative and the PM Gati-shakti National Master Plan are helping  enhance  steel  usage  through  further  engagement  with  potential users,  including  from  Railways,  Defence,  Petroleum  and  Natural  Gas, Housing,  Civil  Aviation,  Road  Transport  and  Highways,  Agriculture  and Rural Development sectors.
- vii. Coordination  with  Ministries  and  States,  besides  other  countries  for facilitating  the  availability  of  raw  material  for  steel  making  on  more favourable terms.
- viii. Notification of Steel Scrap Recycling Policy to enhance the availability of domestically generated scrap.
- ix. Notified  a  Quality  Control  Order  for  145  steel  products  under  Indian Standards to ensure availability of quality steel products for the public at large.

The  Government  has  taken  the  following  initiatives  towards  adoption  of  energy efficient and innovative technologies in steel production: -

- i. Ministry of New and Renewable Energy (MNRE) has notified National Green Hydrogen Mission for green hydrogen production and usage. The steel sector has also been made a stakeholder in the Mission.
- ii. 14 Task Forces had been constituted with engagement of industry, academia, think  tanks,  S&T  bodies,  different  Ministries  and  other  stakeholders  to deliberate  and  recommend  upon  different  levers  of  decarbonisation  of  steel sector.

- iii. The Ministry of Steel is implementing a scheme viz. 'Promotion of Research & Development  in  Iron  &  Steel  Sector'  for  providing  financial  assistance  to reputed Academic  Institutions,  Research  Laboratories  and Indian Steel Companies  for  carrying  out  research  in  the  Iron  and  Steel  sector  for  the following thrust areas:-
- a.  Improvement in energy efficiency
- b.  Reduction in GHG emission to address climate change issues
- c. Improvement in quality of steel products
- d.  To address the technological issues faced by the iron and steel industry
- e.  Beneficiation  of  natural  resources  like  iron  ore  and  coal  for  improved productivity
- f. Utilization of wastes
- g.  Development of value added for import substitution

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