National Steel Policy
Context:
National Steel Policy enshrines the long term vision of the government to give impetus to the steel sector. The policy envisages to create a technologically advanced and globally competitive steel industry that promotes self-sufficiency in steel production as well as economic growth. Steel being a de-regulated sector, government acts a facilitator, by creating enabling environment for development of steel sector.
Iron and Steel Industries
- The iron and steel industries are among the most important industries in India. India replaces Japan as second top steel producer in January,2019.
- As per worldsteel, India’s crude steel production in 2018 was at 106.5 MT, 4.9% increase from 101.5 MT in 2017, means that India has replaced Japan as world second largest steel production country.
- Policy for the sector is governed by the Indian Ministry of Steel,
- The Ministry of Steel concerns itself with coordinating and planning the growth and development of the iron and steel industry, both in the public and private sectors; formulation of policies with respect to production, pricing, distribution, import and export of iron and steel, ferro alloys and refractories; and the development of input industries relating to iron ore, manganese ore, chrome ore and refractories etc., required mainly by the steel industry.
- Most of the public sector undertakings market their steel through the Steel Authority of India (SAIL).
- The Indian steel industry was de-licensed and de-controlled in 1991 and 1992 respectively.
- Steel production centres: raw materials (iron ore) driven (Odisha, Chhattisgarh, Jharkhand and Karnataka) or port based and proximity to markets (Maharashtra and Gujarat). Maharashtra and Tamil Nadu are largest steel using states, both auto hubs.
National Steel Policy 2017 Vision
- To create a globally competitive steel industry that promotes inter-sectoral growth.
The policy’s mission is to create an environment that enables:
- Self-sufficiency in the production of steel by giving policy support and guidance to MSME producers of steel, the private sector, central public sector enterprises and boost sufficient capacity additions.
- Development of internationally competitive manufacturing capabilities.
- Increase in the domestic demand for steel.
- Cost-efficient production and domestic availability of iron ore, coking coal and natural gas.
- Investment in overseas asset acquisitions of raw materials.
Background:
Steel is one of the most important products in the modern world and forms the backbone to any industrial economy. India being one of the fastest growing economies in the world, and steel finding its extensive application right from construction, infrastructure, power, aerospace and industrial machinery to consumer products, the sector is of strategic importance to the country. The Indian steel sector has grown exponentially over the past few years to be the third largest producer of steel globally, contributing to about 2% of the country’s GDP and employing about 5 lakh people directly and about 20 lakh people indirectly.
Untapped potential with a strong policy support becomes the ideal platform for growth. Owing to the strategic importance of the sector along with the need to have a robust and restructured policy in present scenario, the new NSP, 2017 became imminent. Though, National Steel Policy 2005 (NSP 2005) sought to indicate ways and means of consolidating the gains flowing out of the then economic order and charted out a road map for sustained and efficient growth of the Indian steel industry, it required adaptation in view of the recent developments unfolding in India and also worldwide, both on the demand and supply sides of the steel market.
Some highlights of New Steel Policy
Ø The Indian steel sector has grown rapidly over the past few years and presently it is the third largest steel producer globally, contributing to about 2% of the country’s GDP. India has also crossed 100 MT mark for production for sale in 2016-17.
Ø The New Steel Policy, 2017 aspires to achieve 300MT of steel-making capacity by 2030. This would translate into additional investment of Rs. 10 lakh Crore by 2030-31.
Ø The Policy seeks to increase consumption of steel and major segments are infrastructure, automobiles and housing. New Steel Policy seeks to increase per capita steel consumption to the level of 160 Kgs by 2030 from existing level of around 60 Kg.
Ø Potential of MSME steel sector has been recognised. Policy stipulates that adoption of energy efficient technologies in the MSME steel sector will be encouraged to improve the overall productivity & reduce energy intensity.
Ø Steel Ministry will facilitate R&D in the sector through the establishment of Steel Research and Technology Mission of India (SRTMI). The initiative is aimed to spearhead R&D of national importance in iron & steel sector utilizing tripartite synergy amongst industry, national R&D laboratories and academic institutes.
Ø Ministry through policy measures will ensure availability of raw materials like Iron ore, Coking coal and non-coking coal, Natural gas etc. at competitive rates.
Ø With the roll out of the National Steel Policy-2017, it is envisaged that the industry will be steered in creating an environment for promoting domestic steel and thereby ensuring a scenario where production meets the anticipated pace of growth in consumption, through a technologically advanced and globally competitive steel industry. This will be facilitated by Ministry of Steel, in coordination with relevant Ministries, as may be required.
Source: PIB