Year-End Review 2024: Ministry of Steel
In 2024, the Ministry of Steel implemented several key initiatives aimed at improving the sustainability, production capacity, and quality of the steel industry in the country. This review briefly highlights these initiatives.
1) Green Steel Mission : To promote environmental sustainability, the government has launched the ‘Green Steel Mission.’ This mission will help the steel industry reduce carbon emissions and progress towards the Net Zero target. The mission includes the PLI scheme for Green Steel, incentives for the use of renewable energy, and mandates for government agencies to purchase Green Steel. On December 12, 2024, the Ministry released the taxonomy for Green Steel, which will assist the steel industry in its green transition. Additionally, under the National Green Hydrogen Mission, the Ministry of Steel has approved two pilot projects that will produce Direct Reduced Iron (DRI) using 100% hydrogen.
2) Specialty Steel – Production Linked Incentive (PLI) : To promote domestic steel production, the PLI scheme for ‘Specialty Steel’ has been implemented. Companies have committed an investment of ₹27,106 crore, creating 14,760 jobs and aiming for a production target of 7.90 million tonnes of specialty steel. By October 2024, ₹17,581 crore has already been invested, generating over 8,660 jobs.
3) Capacity Expansion and Policy Measures : The government has created a favorable policy environment for the development of the steel sector. Under the ‘Make in India’ initiative, the government has implemented the Domestically Manufactured Iron & Steel Products (DMI&SP) policy to increase the use of domestic steel products in government procurement. Additionally, in the 2024 budget, the basic customs duty (BCD) on Ferro-Nickel has been reduced to zero, which will benefit the stainless steel industry. Similarly, the duty exemption on ferrous scrap has been extended until March 31, 2026.
4) Raw Material Security : India has sufficient reserves of iron ore and non-coking coal to meet the current demand of the domestic steel industry. However, coking coal is imported as the supply of high-quality coking coal (low-ash coal) is limited in the country. The government has increased coking coal imports from various countries, with Russia and Australia being the major suppliers. Additionally, an agreement has been made with Russia to increase the import of coking coal.
5) International Strategy : To enhance the global competitiveness of India’s steel industry, a comprehensive international strategy is being developed. This strategy aims to promote global cooperation in the areas of raw materials, investments, technologies, and steel exports. A working group has been set up to work on India’s steel global outlook, which will prepare an action plan for cooperation with key countries.
6) Ensuring Steel Quality : The Ministry of Steel has implemented standards under the Quality Control Order (QCO) to ensure the quality of steel products. 151 steel standards have been set by BIS, and this process is ongoing. A new portal has been integrated with SIMS 2.0 to check the quality of imported steel, ensuring that sub-standard steel is not supplied.
Through these initiatives, the Ministry of Steel has taken several significant steps in 2024 to enhance the quality, environmental sustainability, and production capacity of the industry. These efforts will not only increase steel production in India but also strengthen India’s position in the global market.
