Govt Steps Up Steel Sector Support and Recycling Push

23 Jul 2025 CW Team

One key move has been the implementation of the Domestically Manufactured Iron & Steel Products (DMI&SP) Policy, encouraging the use of 'Made in India' steel in government procurement. Additionally, the Production Linked Incentive (PLI) Scheme for Specialty Steel has been launched to boost domestic production and reduce reliance on imports through capital investment.

The Union Budget's infrastructure focus has driven steel demand. Adjustments in Basic Customs Duty on ferro nickel and ferrous scrap have helped lower input costs. The Steel Import Monitoring System (SIMS) has been revamped to offer detailed import data, aiding industry stakeholders.

Steel Quality Control Orders have been introduced to curb sub-standard steel in both domestic markets and imports, ensuring access to reliable, high-quality steel.

On the sustainability front, the government is actively promoting circular economy practices. The Steel Scrap Recycling Policy (2019) sets a collaborative framework among ministries to improve ferrous scrap recycling.

The Vehicle Scrapping Policy, under the Ministry of Road Transport and Highways (MoRTH), promotes phasing out old, polluting vehicles. It outlines rules for the Registration and Functioning of Vehicle Scrapping Facilities (RVSFs), ensuring proper depollution and material recovery from End-of-Life Vehicles (ELVs).

Further, the Environment Protection (End-of-Life Vehicles) Rules, 2025, introduced by the Ministry of Environment, mandate Extended Producer Responsibility (EPR), setting scrapping targets for producers based on vehicle types and recovered materials.

The Recycling of Ships Act, 2019, has also been notified by the Ministry of Shipping, Ports and Waterways to promote safe and environmentally sound ship recycling.

These details were shared by the Minister of State for Steel and Heavy Industries, Shri Bhupathiraju Srinivasa Varma, in a written response to the Lok Sabha.

Steel is a de-regulated sector, and the Indian Government acts as a facilitator by shaping a policy environment conducive to its growth. Several initiatives have been undertaken to support the steel industry, including promoting domestic manufacturing, reducing input costs, enhancing monitoring, and improving product standards.One key move has been the implementation of the Domestically Manufactured Iron & Steel Products (DMI&SP) Policy, encouraging the use of 'Made in India' steel in government procurement. Additionally, the Production Linked Incentive (PLI) Scheme for Specialty Steel has been launched to boost domestic production and reduce reliance on imports through capital investment.The Union Budget's infrastructure focus has driven steel demand. Adjustments in Basic Customs Duty on ferro nickel and ferrous scrap have helped lower input costs. The Steel Import Monitoring System (SIMS) has been revamped to offer detailed import data, aiding industry stakeholders.Steel Quality Control Orders have been introduced to curb sub-standard steel in both domestic markets and imports, ensuring access to reliable, high-quality steel.On the sustainability front, the government is actively promoting circular economy practices. The Steel Scrap Recycling Policy (2019) sets a collaborative framework among ministries to improve ferrous scrap recycling.The Vehicle Scrapping Policy, under the Ministry of Road Transport and Highways (MoRTH), promotes phasing out old, polluting vehicles. It outlines rules for the Registration and Functioning of Vehicle Scrapping Facilities (RVSFs), ensuring proper depollution and material recovery from End-of-Life Vehicles (ELVs).Further, the Environment Protection (End-of-Life Vehicles) Rules, 2025, introduced by the Ministry of Environment, mandate Extended Producer Responsibility (EPR), setting scrapping targets for producers based on vehicle types and recovered materials.The Recycling of Ships Act, 2019, has also been notified by the Ministry of Shipping, Ports and Waterways to promote safe and environmentally sound ship recycling.These details were shared by the Minister of State for Steel and Heavy Industries, Shri Bhupathiraju Srinivasa Varma, in a written response to the Lok Sabha.

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