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Local Products Get Priority In The New Steel Policy

A new policy that aims to achieve steel making capacity of 300 million tonnes by 2030 with an additional investment of Rs 10 lakh crore got the Cabinet green light today. The Cabinet also approved a policy for use of domestic steel products in government organisations. “The Union Cabinet chaired by Prime Minister Narendra Modi has given its approval to the National Steel Policy (NSP) 2017,” the steel ministry said in a statement.

“The Cabinet has approved the policy for providing preference to domestically manufactured iron and steel products on government procurement,” the ministry said in another statement.

The policy makes it mandatory to give preference to domestically manufactured iron and steel products (DMI&SP) in government procurement. The policy is applicable to all government tenders where price bid is yet to be opened.

“The DMI&SP policy provides a minimum value addition of 15 per cent in notified steel products which are covered under preferential procurement. In order to provide flexibility, the Ministry of Steel may review specified steel products and the minimum value addition criterion,” it said.

The policy projects crude steel capacity of 300 mt, production of 255 mt and robust finished steel per capita consumption of 158 kg by 2030-31, as against the current use of 61 kg.

Steel Minister Chaudhary Birender Singh is confident that the policy will give a concrete shape to future plans and policies for the steel industry in India. “We have taken a holistic and comprehensive view of the steel sector in India and its key growth drivers to ensure sustainable growth of all segments of the industry,” he said.

The policy is designed to promote growth and development of the domestic steel Industry and reduce the inclination to use low quality, low cost imported steel in government-funded projects. It shall be the responsibility of every government agency to ensure implementation of the policy.

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