India Backs Steel Sector with Policy, PLI, and Recycling Push

25 Jul 2025 CW Team

To boost domestic manufacturing, the Domestically Manufactured Iron & Steel Products (DMI&SP) Policy was introduced to promote the use of ‘Made in India’ steel in government procurement. Additionally, the Production Linked Incentive (PLI) Scheme for Specialty Steel was launched to encourage capital investment, enhance local production, and reduce dependence on imports.

Steel consumption has also been positively impacted by increased infrastructure spending under the Union Budget. Further, the government has adjusted Basic Customs Duty on ferro nickel and ferrous scrap to lower raw material costs.

A revamped Steel Import Monitoring System (SIMS) now offers detailed insights into imports, while Steel Quality Control Orders ban the sale of sub-standard steel products—both domestic and imported—ensuring the availability of high-quality steel across the market.

To promote a circular economy in steel production, several recycling-focused measures have been implemented. The Steel Scrap Recycling Policy (2019) facilitates the reuse of ferrous scrap in coordination with various ministries. The Vehicle Scrapping Policy from the Ministry of Road Transport and Highways incentivises scrapping older, polluting vehicles through a regulated system for de-pollution and dismantling of End-of-Life Vehicles (ELVs).

The Environment Protection (End-of-Life Vehicles) Rules, 2025 mandate Extended Producer Responsibility (EPR), requiring vehicle manufacturers to meet scrapping targets based on material recovery. The Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016 ensure safe handling and recycling of hazardous waste.

Furthermore, the Recycling of Ships Act, 2019—enacted by the Ministry of Shipping, Ports and Waterways—regulates safe and environmentally sound recycling of ships, reinforcing India’s push for sustainable practices in heavy industry.

Steel is a de-regulated sector, and the Indian government serves as a facilitator by creating a supportive policy framework to drive its development. In a written reply to the Lok Sabha, Minister of State for Steel and Heavy Industries, Shri Bhupathiraju Srinivasa Varma, outlined multiple initiatives undertaken to support the sector's growth and sustainability.To boost domestic manufacturing, the Domestically Manufactured Iron & Steel Products (DMI&SP) Policy was introduced to promote the use of ‘Made in India’ steel in government procurement. Additionally, the Production Linked Incentive (PLI) Scheme for Specialty Steel was launched to encourage capital investment, enhance local production, and reduce dependence on imports.Steel consumption has also been positively impacted by increased infrastructure spending under the Union Budget. Further, the government has adjusted Basic Customs Duty on ferro nickel and ferrous scrap to lower raw material costs.A revamped Steel Import Monitoring System (SIMS) now offers detailed insights into imports, while Steel Quality Control Orders ban the sale of sub-standard steel products—both domestic and imported—ensuring the availability of high-quality steel across the market.To promote a circular economy in steel production, several recycling-focused measures have been implemented. The Steel Scrap Recycling Policy (2019) facilitates the reuse of ferrous scrap in coordination with various ministries. The Vehicle Scrapping Policy from the Ministry of Road Transport and Highways incentivises scrapping older, polluting vehicles through a regulated system for de-pollution and dismantling of End-of-Life Vehicles (ELVs).The Environment Protection (End-of-Life Vehicles) Rules, 2025 mandate Extended Producer Responsibility (EPR), requiring vehicle manufacturers to meet scrapping targets based on material recovery. The Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016 ensure safe handling and recycling of hazardous waste.Furthermore, the Recycling of Ships Act, 2019—enacted by the Ministry of Shipping, Ports and Waterways—regulates safe and environmentally sound recycling of ships, reinforcing India’s push for sustainable practices in heavy industry.

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