PolicyIndustry
Draft steel policy aims for 604 million tonnes of capacity by 2047
The Ministry of Steel's draft would replace the 2017 policy. It plans for nearly three times today's capacity, triple the coking coal and a 39% cut in emissions per tonne.
Key points
- The draft National Steel Policy-Vision 2047 sets a target of 604 million tonnes of crude steel capacity, up from about 220 million tonnes now.
- It projects finished steel consumption of 505 million tonnes and per-capita use of 302 kg, against 116 kg today.
- Coking coal demand would rise from 72 to 236 million tonnes, and India now imports nearly 92% of what it uses.
- Emissions per tonne of crude steel are to fall from 2.54 to 1.54 tonnes of CO2 by 2047.
The Ministry of Steel has put out a draft National Steel Policy-Vision 2047 that plans for India to build 604 million tonnes (MT) of crude steel capacity by 2047. Installed capacity today is about 220 MT, so the target is close to three times the current level.
The draft would replace the National Steel Policy of 2017, which aimed for 300 MT of capacity by 2030-31 and per-capita consumption of 160 kg. The ministry has invited feedback from industry on its website.
The headline numbers
The draft projects crude steel production of 531 MT and finished steel consumption of 505 MT by 2047. Per-capita consumption would rise to 302 kg from 116 kg now. These projections assume GDP growth of about 7% a year and capacity running at 88%.
Exports are pegged at 45 MT. India produced about 170 MT of crude steel in 2025-26, up from about 89 MT in 2014-15. Finished steel consumption rose from 77 MT to 164 MT over the same years.
Steel Secretary Sandeep Poundrik said on 29 September that new issues had come up since 2017 and that a course correction was needed on capacity and consumption. He also described the draft’s aim.
This National Steel Policy is being formulated with a vision to bring India to Viksit Bharat target in 2047.
Raw materials are the big gap
Raw materials make up 65-70% of the cost of making steel, and much of the draft deals with them. India is largely self-sufficient in iron ore but imports nearly 92% of its coking coal.
To cut coal imports, the draft proposes more domestic mining, more washeries, buying mining assets abroad, long-term supply contracts and AI tools to optimise coal blends. Washeries now have about 39 MT a year of capacity but produce only about 6 MT of washed coal from roughly 17 MT of feed.
It also wants far more iron ore moved by slurry pipeline, from about 18 MT a year to more than 299 MT. Only about 1% of iron ore moves this way today. The draft notes that slurry pipelines “require significant water and face environmental concerns”, and proposes single-window clearances and viability gap funding.
Emissions and scrap
The steel sector accounts for 10-12% of India’s CO2 emissions. The draft targets a fall in emission intensity from 2.54 to 1.54 tonnes of CO2 per tonne of crude steel by 2047, a cut of about 39%. The global average is about 1.92 tonnes.
The plan is phased: energy efficiency, renewable power and more scrap first, then wider use of advanced technology, and later green hydrogen-based direct reduced iron and carbon capture for leftover emissions.
Scrap supply is projected to rise from 36 MT in 2025-26 to 123 MT in 2047-48. The draft proposes a mission-mode collection drive modelled on Swachh Bharat, and extended producer responsibility for end-of-life vehicles, construction waste and consumer durables.
Small producers, safety and imports
The secondary steel sector, about 2,550 smaller units, holds nearly 47% of crude steel capacity. Poundrik said in September that the ministry was proposing a ₹5,000 crore Viksit Bharat ISPAT scheme for small producers, with incentives linked to output and emission cuts. It has not yet been approved.
The draft also proposes a Steel Industry Safety Council, AI-based monitoring of substandard imports, and a national steel data platform.