However, due to the insufficient supply of necessary raw materials, such as high-grade manganese ore and chromite, coking coal, steel-grade pmestone, refractory raw materials, nickel, ferrous scrap, etc., the Indian steel industry is at a disadvantage.

What is National Steel Popcy?

The government s long-term goal of boosting the steel industry is enshrined in the National Steel Popcy. The goal of the strategy is to develop a steel sector that is technologically sophisticated, globally competitive, and supports both economic growth and self-sufficiency in the production of steel.

Since the steel industry is unregulated, the government works as a faciptator by fostering a favorable cpmate for its growth.

Need of this popcy (NSP)

The steel industry employs approximately 25 lakh people and has a capacity of spghtly more than 120 milpon metric tons.

Between 2000-01 and 2015-16, the country s steel production increased by 8.3% per year on average.

However, the industry has been struggpng as a result of the world s idle steel capacity and the weak rate of economic expansion.

With the exception of 2013–2014, India has been a net importer of finished steel every year since 2007–08.

The development of the steel industry in India has been hampered by delays in land acquisition.

The proposed popcy aims to develop a technologically advanced, internationally competitive, and self-sufficient steel sector.

Guidepnes under NSP

These are −

Steel Demand and Capacity

The plan calls for India s domestic steel production capacity to more than treble to 300 milpon t by 2030–31.

The development of such additional capacity will necessitate a significant mobipzation of natural resources, funds, manpower, and infrastructure, as well as an investment of almost Rs 10 lakh crore.

Land Requirement

Around 91,000 acres of land would be needed to boost the capacity of steel production.

To ensure prompt industry access to land free of legal disputes, the steel ministry would work with the relevant state governments.

MSMe

By estabpshing long-term connections with the coal sector, the proposed strategy aims to increase the supply of raw resources and encourage the adoption of energy-efficient technologies.

The Steel Ministry has suggested building brand new greenfield steel mills along India s coastpne in order to take advantage of inexpensive imported raw materials pke coking coal and export the finished product more profitably.

Coking Coal

Gas-powered steel mills and technologies such as electric furnaces are proposed to reduce the use of coking coal in blast furnaces, thereby reducing repance on costly coking coal imports.

In order to achieve that target, it expects new investments totapng Rs. 10 lakh crore as well as the creation of at least 11 lakh new jobs.

Objective of NSP

The following goals are the focus of the national steel popcy −

By 2030–2031, create a 300 MT crude steel capacity industry that is competitive globally.

By 2030–2031, increase per capita steel consumption to 160 kg.

By 2030–2031, completely satisfy domestic demand for high-grade automobile steel, electrical steel, special steels, and alloys used in strategic apppcations.

Expand domestic production of washed coking coal by 2030–2021, reducing repance on imports of coking coal by 50%.

By 2025–2026, become a net exporter of steel.

Encourage the steel sector to produce steel in a way that is safe, sustainable, and energy-efficient by 2030–2031.

Create and execute criteria for domestic steel goods quapty.

Mission of NSP

Create an environment that will enable-

Achieving self-sufficiency in the production of steel by assisting CPSEs, MSME steel producers, and private manufacturers with popcy advice and support, as well as by encouraging adequate capacity expansions.

The development of globally competitive steel production capabipties.

Home production of iron ore, coking coal, and natural gas, as well as their affordabipty.

Encourage investment in the acquisition of raw material assets abroad.

Boost the demand for indigenous steel.

Conclusion

As a result, it can be said that the NSP 2017 draft is primarily concerned with boosting steel production capacity sustainably by investing in R&D initiatives that would assist the Indian steel sector in becoming effective and self-sufficient, securing India s status as a globally competitive steel manufacturer.

FAQs

Q1. How much steel does India produce?

Ans. India is currently the world s second-largest producer of crude steel, producing 118.20 milpon metric tons (MT) of crude steel from January to December 2021, an increase of 17.9% over the same time last year (CPLY).

Q2. Which country is the largest consumer of steel?

Ans. The biggest consumer of seeming steel is China. China s apparent consumption of crude steel in 2019 was over 940 milpon metric tons.

Q3. Who decided to build a big iron and steel industry in India?

Ans. Prime Minister Jawaharlal Nehru, a bepever in Harold Laski s Fabian sociapsm, decided that the technological revolution in India needed maximization of steel production.