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Cabinet approves National Steel Policy to create more capacity in sector

04 May 2017 Evaluate

In order to give impetus to the steel sector, the Union Cabinet has given its approval for National Steel Policy (NSP) 2017 that envisages Rs 10 lakh crore investment to create more capacity in the sector. The development assumes significance as the steel sector is reeling under weak demand and mounting raw material prices. 

The policy aims at increasing supply of domestic coking coal to cut dependence on imports by half and production of 300 million tonnes of the alloy by 2030-31. The policy also looks at increasing per capita steel consumption to 160 kg by 2030-31 and encouraging the industry to be a world leader on energy and raw material-efficient steel production by 2030-31 in a safe and sustainable manner. The proposed policy looks to develop and implement quality standards for domestic steel products.

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.

Meanwhile, in 2015, India was the only large economy in the world where steel demand continued to show a positive growth at 5.3 percent as against China's (-) 5.4 percent and Japan's (-) 7 percent. India's growing urban infrastructure and manufacturing sectors indicate that demand is likely to remain robust in years ahead.

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