India to Release New National Steel Policy Draft Within a Week
Poundrik said the government was revisiting the National Steel Policy 2017 because the sector had changed substantially over the past decade. The new policy will address artificial intelligence, machine learning, technology upgrades, decarbonisation and sustainability, alongside changes in domestic steel capacity and consumption.
The existing policy envisages crude steelmaking capacity of 300 mn t per annum by 2030-31. Data released by the Steel Ministry in August showed that India’s annual crude steel capacity had reached about 222.7 mn t by July 2026, highlighting the expansion that has taken place since the earlier framework was introduced.
The proposed policy will include measures to discourage cheap and sub-standard steel imports, including safeguards and anti-dumping action. It will also seek to improve the competitiveness of domestic producers, particularly smaller companies, as the government works to align capacity growth with demand and changing global conditions.
The government is proposing a Rs. 50 bn scheme, Viksit Bharat Ispat, for small steel producers. Incentives under the programme would be linked to production and reductions in carbon emissions, while emission cuts would require improved technology, better raw materials and greater use of renewable energy. The scheme is likely to be submitted to the competent authority for approval in the near future.
The Steel Ministry has also been promoting digitalisation through artificial intelligence, machine learning, digital twins, robotics and advanced data analytics. These technologies are expected to support capacity expansion while addressing decarbonisation and competitiveness. The government is separately developing measures to promote green steel, including incentives for smaller producers and carbon-reduction requirements for larger steelmakers.