Steel is one of the most important products of the modern world. It is of strategic importance to any industrial nation. It finds a place in a variety of applications like construction, industrial machinery, consumer products etc. The nature and extent of raw materials used defines the diversity of the technologies of the industry.

India is now the 3rd largest steel producer in the world, producing at least 90MT, and a capacity of 122MT in FY 2015-16. Today the Indian steel industry contributes approximately 2% to the country’s GDP and employs about 5 lakh people directly and about 20 lakh people indirectly.

In light of these facts the government published the National Steel Policy 2017 (NSP 2017) in an effort to enhance the production of steel (focusing on high end value added steel), and aiming to achieve full potential vis-a-vis the steel industry.

India produces high grade iron ore and non-coking coal, which are the two major ingredients for production of steel. The utility of steel in MSMEs, young human resources in the sector and a growing steel market has been a driving force for coming up with the NSP 2017.

Untested Potential

After China, India is rooted to become the 2nd largest steel producer in the world. Though in comparison, the per capita steel consumption in India is 61Kg, whereas the world average is 208Kg. This will reflect in the overall growth potential of this industry. In recent years, the infrastructure and construction industry has seen a major boom, with focus on the defence sector, shipbuilding industry, automobile sector, affordable housing and the expansion of the railway networks.

Shortcomings

However, India is lagging in various aspects when it comes to steel. First, India does not produce value added products like automotive steel for high end applications, electric steel, special steel and alloys for power equipments, aerospace, defence and nuclear applications, in the expected quantity. Secondly, there is limited availability of some of the essential raw materials like steel grade limestone, refractory raw materials, high grade lumpy Manganese ore and Chromite, and Ferrous scrap. Thirdly, the shortage of domestic coking coal results in high dependency of importation of the same by pig iron producers in India.

Vision and Mission

Thus, to create a technologically advanced and globally competitive steel industry that promotes economic growth, and to provide environment for attaining:

• Self-sufficiency in steel production by providing policy support & guidance to private manufacturers, MSME steel producers, CPSEs & encourage adequate capacity additions;
• Development of globally competitive steel manufacturing capabilities;
• Cost-efficient production and domestic availability of iron ore, coking coal and natural gas;
• Facilitate investment in overseas asset acquisitions of raw materials; and
• Enhance domestic steel demand;

the government has rolled out the NSP 2017.

To read more on the National Steel Policy 2017 and how it affects the stainless steel industry, most importantly in the infrastructure sector, stay tuned.