India became the world’s second-largest steel producer in 2018 surpassing Japan and remained so since then. Data on steel production released by World Steel Association on a calendar year basis is given below for the year 2017 to 2023 which indicated a compounded annual growth rate (CAGR) of 5.54% for India in comparison to 1.42% for the whole world.
| Year | World Crude Steel Production(Mt) | India Crude Steel Production(Mt) |
| 2017 | 1739 | 102 |
| 2018 | 1831 | 109 |
| 2019 | 1880 | 111 |
| 2020 | 1885 | 100 |
| 2021 | 1963 | 118 |
| 2022 | 1890 | 125 |
| 2023 | 1892 | 141 |
| Source: World Steel Association, Mt=million tonnes | ||
Steel is a de-regulated sector. The Government acts as a facilitator, by creating conducive policy environment for development of the steel sector. The measures taken by the Government to improve production and consumption of steel in the country are as under: –
- Implementation of Domestically Manufactured Iron & Steel Products (DMI&SP) Policy for promoting Made in India steel for Government procurement.
- The Government has launched the Production Linked Incentive (PLI) Scheme for specialty steel to promote the manufacturing of ‘Specialty Steel’ within the country and reduce import by attracting capital investments. The anticipated additional investment under PLI Scheme for specialty steel is Rs. 29,500 crores and an additional capacity creation of around 25 million tonnes (MT) for specialty steel.
- Make in India initiative and the PM Gati-shakti National Master Plan with further engagement with potential users, including from Railways, Defence, Petroleum and Natural Gas, Housing, Civil Aviation, Road Transport and Highways, Agriculture and Rural Development sectors to enhance the steel usage, overall demand for steel and investment in the steel sector in the country.
- Coordination with Ministries and States, besides other countries for facilitating the availability of raw material for steel making on more favourable terms.
- Notification of Steel Scrap Recycling Policy to enhance the availability of domestically generated scrap.
- Notification of 145 numbers Steel Quality Control Orders to prevent manufacturing and import of non-standardized steel and to make available quality steel products to the public at large.
The steps taken by Government for promoting decarbonisation in steel industry are as under:
- 14 Task Forces had been constituted with engagement of industry, academia, think tanks, S&T bodies, different Ministries and other stakeholders to discuss, deliberate and recommend upon different levers of decarbonisation of steel sector.
- Steel Scrap Recycling Policy, 2019 enhances the availability of domestically generated scrap to reduce the consumption of coal in steel making.
- Ministry of New and Renewable Energy (MNRE) has notified National Green Hydrogen Mission for green hydrogen production and usage. The steel sector has also been made a stakeholder in the Mission.
- Motor Vehicles (Registration and Functions of Vehicles Scrapping Facility) Rules September 2021, envisages to increase availability of scrap in the steel sector.
- National Solar Mission launched by Ministry of New and Renewable Energy in January 2010 promotes the use of solar energy and also helps to reduce the emission of steel industry.
- Perform, Achieve and Trade (PAT) scheme, under National Mission for Enhanced Energy Efficiency, incentivizes steel industry to reduce energy consumption.
- The steel sector has adopted the Best Available Technologies (BAT) available globally, in the modernization & expansions projects.
- Japan’s New Energy and Industrial Technology Development Organization (NEDO) Model Projects for Energy Efficiency Improvement have been implemented in steel plants.
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