Draft National Steel Policy: 604 Million Tonnes of Capacity and Lower Emissions by 2047
The Ministry of Steel released a draft steel policy for public consultation (comments from the public and industry before it is finalised). It will replace the National Steel Policy 2017.
The draft targets 604 million tonnes of steelmaking capacity by 2047, up from about 220 million tonnes today. That is nearly three times the present capacity.
It aims to cut the sector's average carbon-emission intensity (the carbon dioxide released to make one tonne of crude steel) from about 2.54 tonnes to about 1.54 tonnes by 2047, in line with India's goal of net zero emissions by 2070.
The ministry expects iron ore demand of 772 million tonnes by 2047. It plans to secure high-grade ore by buying mining assets abroad and forming joint ventures.
It expects coking coal demand of about 236 million tonnes (some reports of the draft cite 214 million tonnes). Since India imports most of its coking coal, the plan is to diversify sources through "strategic global outreach" and overseas assets.
National Steel Policy: India's Roadmap for the Steel Sector
A National Steel Policy is a long-term plan made by the Government of India for the steel industry. It sets targets for how much steel India should be able to make and use, and lists the steps to get there: raw materials, technology, finance, demand and the environment. It does not run steel plants itself. It shows the direction in which the whole industry should move.
The draft policy replaces NSP 2017 and moves the target year to 2047. Its new capacity target of 604 million tonnes is about double the 2017 goal, and it adds firm plans for emissions and overseas raw materials, the two biggest weaknesses of Indian steel.
Green Steel: Decarbonising Iron and Steel Making
Green steel is steel made with very little or almost no release of carbon dioxide (CO2), the main gas causing climate change. Normal steel making burns huge amounts of coal. Green steel replaces coal with cleaner options like hydrogen made from renewable power, electricity from solar and wind, and recycled scrap. In India, the government has also given an official definition: steel is "green" only if its emissions are below a fixed limit.
The draft steel policy wants to cut emission intensity by about 40% while nearly tripling capacity. That is only possible if a large share of the new plants use green steel routes like hydrogen DRI, scrap-based furnaces and clean power.
- Draft steel policy capacity target: 604 million tonnes by 2047 (from about 220 MT now)
- Replaces: National Steel Policy 2017 (target: 300 MT capacity by 2030-31)
- Emission intensity target: 2.54 → 1.54 tCO2 per tonne of crude steel by 2047
- Projected iron ore demand by 2047: 772 million tonnes
- Projected coking coal demand by 2047: about 236 million tonnes
- Raw material plan: overseas mining assets, joint ventures and diversified sourcing
- India: 2nd largest crude steel producer; 165 MT crude steel in calendar 2025 (provisional)
- India's net zero goal: 2070