On the back of a conducive policy environment and the Centre’s push for infrastructure development, the country’s crude steel production has increased by 35 million tonnes over the last five years. According to the information shared by the Minister of State (MoS) for Steel and Heavy Industries, Bhupathi Raju Srinivasa Varma, crude steel production in 2023-24 stood at 144.30 million tonnes, compared to 109.14 million tonnes in 2019-20.
While exports of finished steel from India rose from 8.35 million tonnes in 2019-20 to 13.49 million tonnes in 2021-22, they declined to 7.48 million tonnes in 2023-24, as per the data provided by the MoS. However, exports to the European Union (EU) increased from 1.8 million tonnes in 2019-20 to 4.03 million tonnes in 2023-24.
As the total crude steel capacity of the country is projected to reach 300 million tonnes by 2030-31, the government has taken various steps to create a conducive policy environment for boosting production. This includes the implementation of the Domestically Manufactured Iron and Steel Products (DMI & SP) policy to promote "Made in India" steel for government procurement.
Additionally, the basic customs duty on ferro nickel has been reduced from 2.5 per cent to zero, and the duty exemption on ferrous scrap has been extended until 31 March 2024. The MoS also noted that the "Make in India" initiative and the PM Gati Shakti National Master Plan are helping to enhance steel usage by engaging potential users such as railways, defence, petroleum and natural gas, and housing sectors, among others.
The per capita consumption of finished steel in India was 95.2 kilograms in the calendar year 2023, compared with the global average of 219 kilograms during the same period.
To promote the steel industry in rural areas, the Ministry of Steel has undertaken a project for the development of type designs for Anganwadis and houses using structural steel as part of the Pradhan Mantri Awas Yojana, aimed at increasing steel usage. The Steel Authority of India (SAIL) and Rashtriya Ispat Nigam Ltd (RINL) have appointed rural dealers and initiated other promotional activities to educate rural India on the benefits of using steel.
Through the promotion of renewable energy, the Centre is striving to reduce carbon emissions in the steel industry. The utilisation of green hydrogen and carbon capture, utilisation, and storage are key focus areas for the medium term (2030-2047), while disruptive technological innovations are expected to help achieve the transition to net zero in the longer term (2047-2070), according to a written reply by the MoS.
To reduce the carbon footprint in the steel sector, 14 task forces have been constituted, engaging industry experts, academia, think tanks, ministries, and other stakeholders to discuss, deliberate, and recommend various strategies for decarbonization.
Additionally, the Ministry of New and Renewable Energy (MNRE) introduced the National Green Hydrogen Mission to promote green hydrogen production and usage. The steel sector, as a stakeholder in the mission, has been allocated Rs 455 crore to encourage the use of green hydrogen in iron and steelmaking.
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