Lok Sabha Question No. 2562 (UNSTARRED), answered on 2025-12-16
Subject: Crude Steel Production Capacity under the National Steel Policy
Ministry: STEEL
Asked by: Ms Iqra Choudhary, Shri Pushpendra Saroj

THE MINISTER OF STEEL

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA UNSTARRED QUESTION NO. 2562 FOR ANSWER ON 16.12.2025

## CRUDE  STEEL  PRODUCTION  CAPACITY  UNDER  THE  NATIONAL  STEEL POLICY

2562.  Ms. IQRA CHOUDHARY: SHRI PUSHPENDRA SAROJ:

Will the Minister of STEEL be pleased to state:

- (a)  the  current  crude  steel  production  capacity,  per-capita  steel  consumption  and number of operational and non-operational steel units under the National Steel Policy (NSP) 2017, State-wise and district-wise for Uttar Pradesh;
- (b) the details of NSP-linked infrastructure created, component-wise, State-wise and district-wise for Uttar Pradesh;
- (c) whether the Government has reviewed raw material availability (iron ore, coking coal,  pellets)  for  UP-based  MSME  steel  units  and  its  impact  on  production  and employment and if so, the findings thereof;
- (d)  the  progress  of  technology-upgradation,  energy-efficiency  and  scrap-recycling initiatives  in  UP  steel  units  under  NSP  along  with  funds  allocated,  sanctioned  and released; and
- (e) whether any project proposals received from Uttar Pradesh for cluster development,  recycling  units  or  R&D  support  are  pending  and  if  so,  the  reasons therefor and the timeline of approval?

## ANSWER

(SHRI H.D. KUMARASWAMY)

(a)to(e): National  Steel  Policy  (NSP),  2017,  was  introduced  to  provide  policy direction  to  the  steel  sector  in  India  including  Uttar  Pradesh  and  to  create  a technologically  advanced  and  globally  competitive  steel  industry  that  promotes economic growth. The current status of the steel sector vis-a vis projections in National Steel Policy (NSP), 2017, is given below:-

| In Million Tonnes   | In Million Tonnes                             | In Million Tonnes                                  | In Million Tonnes        |
|---------------------|-----------------------------------------------|----------------------------------------------------|--------------------------|
| S. No.              | Parameter                                     | Projections for the year (2030-31) under NSP, 2017 | Current Status (2024-25) |
| 1                   | Total crude steel capacity                    | 300                                                | 200.33                   |
| 2                   | Total crude steel demand/ production          | 255                                                | 152.18                   |
| 3                   | Total finished steel demand/ production       | 230                                                | 146.69                   |
| 4                   | Per Capita Finished Steel Consumption (in kg) | 158                                                | 108                      |

Crude steel capacity and crude steel production of Uttar Pradesh are 3.295 million tonnes and 2.227 million tonnes respectively.

Steel  is  a  deregulated  sector  and  the  Government  acts  as  a  facilitator  by creating  a  conducive  policy  environment  for  the  development  of  the  steel  sector. Government has taken  several  measures  for  raw  material  availability,  technologyupgradation, energy-efficiency as well as to facilitate and promote scrap recycling in India including Uttar Pradesh which include the following: -

1.   Implementation of Domestically Manufactured Iron & Steel Products (DMI&SP) Policy for promoting 'Made in India' steel for Government procurement.
2.   Launch of the Production Linked Incentive (PLI) Scheme for Specialty Steel to promote the manufacturing of value-added steel within the country and reduce imports by attracting capital investments.
3.    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.
4.   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.

5. The Recycling of Ships Act, 2019 notified with aims to regulate and promote the safe and environmentally sound recycling of ships.

6. In  the  Union  Budget  2024-25,  following  measures  were  taken  to  support domestic manufacturers and boost domestic steel manufacturing:-

- a. Basic Customs Duty (BCD) has been reduced from 2.5% to Nil on Ferro-Nickel and Molybdenum ores and concentrates which are raw materials for steel industry.
- b. BCD exemption on Ferrous Scrap has been continued upto 31.03.2026.
- c. The exemption on specified raw material for manufacture of Cold Rolled Grain Oriented (CRGO) steel has been continued up to 31.3.2026.

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