Lok Sabha Question No. 1200 (UNSTARRED), answered on 2024-07-30
Subject: Steel Production
Ministry: STEEL
Asked by: Shri Anurag Singh Thakur, Shri Jugal Kishore, Shri Naba Charan Majhi, Shri Brijmohan Agrawal

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA UNSTARRED QUESTION NO. 1200

FOR ANSWER ON 30.07.2024

## STEEL PRODUCTION

1200. SHRI ANURAG SINGH THAKUR:

SHRI JUGAL KISHORE:

SHRI NABA CHARAN MAJHI:

SHRI BRIJMOHAN AGRAWAL:

Will the Minister of STEEL be pleased to state:

- (a) whether the Goverment is aware that country has strengthened its position in the global steel market, which is facing challenges, if so, the details thereof;
- (b) the details of the plans/scheme of the Government to increase and improve the steel production in the country; and
- (c)  the  steps  taken  by  the  Government  to  reduce  the  carbon  footprint  of  the  steel industry?

## ANSWER

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

- (a) India  became  the  world's  second-largest  steel  producer  in  2018  surpassing Japan and remained so since then. Data on steel production released by World Steel Association on a calendar year basis is given below for the year 2017 to 2023 which indicated a compounded annual growth rate (CAGR) of  5.54% for India in comparison to 1.42% for the whole world.
- (b) Steel is a de-regulated sector. The Government acts as a facilitator, by creating conducive  policy  environment  for  development  of  the  steel  sector.  The  measures taken  by  the  Government  to  improve  production  and  consumption  of  steel  in  the country are as under: -
- i. Implementation of Domestically Manufactured Iron & Steel Products (DMI&SP)  Policy for promoting Made  in India steel for  Government procurement.

| Year                                               | World Crude Steel Production(Mt)                   | India Crude Steel Production(Mt)                   |
|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|
| 2017                                               | 1739                                               | 102                                                |
| 2018                                               | 1831                                               | 109                                                |
| 2019                                               | 1880                                               | 111                                                |
| 2020                                               | 1885                                               | 100                                                |
| 2021                                               | 1963                                               | 118                                                |
| 2022                                               | 1890                                               | 125                                                |
| 2023                                               | 1892                                               | 141                                                |
| Source: World Steel Association, Mt=million tonnes | Source: World Steel Association, Mt=million tonnes | Source: World Steel Association, Mt=million tonnes |

- 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 import by attracting capital investments. The anticipated additional  investment  under  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. Make  in  India  initiative  and  the  PM  Gati-shakti  National  Master  Plan  with 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 to enhance the steel usage,  overall  demand  for  steel  and  investment  in  the  steel  sector  in  the country.
- iv. Coordination with Ministries and States, besides other countries for facilitating the availability of raw material for steel making on more favourable terms.
- v. Notification  of  Steel  Scrap  Recycling  Policy  to  enhance  the  availability  of domestically generated scrap.
- vi. Notification of 145  numbers  Steel Quality Control Orders to prevent manufacturing and import of non-standardized steel and to make available quality steel products to the public at large.

(c) The steps taken by Government for promoting decarbonisation in steel industry are as under:

- i. 14 Task Forces had been constituted with engagement of industry, academia, think tanks, S&T bodies, different Ministries and other stakeholders to discuss, deliberate  and  recommend  upon  different  levers  of  decarbonisation  of  steel sector.
- ii. Steel Scrap Recycling Policy, 2019 enhances the availability of domestically generated scrap to reduce the consumption of coal in steel making.
- iii. 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.
- iv. Motor  Vehicles  (Registration  and  Functions  of  Vehicles  Scrapping  Facility) Rules September 2021, envisages to increase availability of scrap in the steel sector.
- v. 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.
- vi. Perform,  Achieve  and  Trade  (PAT)  scheme,  under  National  Mission  for Enhanced  Energy  Efficiency,  incentivizes  steel  industry  to  reduce  energy consumption.
- vii. The steel sector has adopted the Best Available Technologies (BAT) available globally, in the modernization & expansions projects.
- viii. Japan's  New  Energy  and  Industrial  Technology  Development  Organization (NEDO)  Model  Projects  for  Energy  Efficiency  Improvement  have  been implemented in steel plants.

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