India produced 89.711 million tonnes of domestic finished steel during Apr-Nov 2023, registering 14.3 percent growth.
Feb 21, 2024
The future of the steel sector in India looks propitious, as the domestic finished steel production during the first eight months of the current fiscal year (April-November 2023) has reached 89.711 million tonnes, as against 78.498 million tonnes during the corresponding period last year (CPLY), registering a 14.3 percent growth.
The domestic steel consumption stood at 87.066 million tonnes, 14.9 percent higher than CPLY of 75.765 million tonnes. The production of domestic crude steel was 94.114 million tonnes, registering a growth of 14.7 percent, as compared to the production of 82.072 million tonnes in the corresponding period last year.
During April-November 2023, the finished steel imports increased from 3.751 million tonnes last year to 4.253 million tonnes in the current year, witnessing a growth of 13.4 percent.
The government had last year initiated a slew of measures for the growth of the steel sector, such as introduction of the Production Linked Incentive (PLI) scheme, establishment of Nagarnar Integrated Steel Plant, uploading of geo-locations of steel units under the PM Gati Shakti National Master Plan, decarbonization of steel sector and establishment of the national green mission.
Production Linked Incentive (PLI) Scheme
The government approved inclusion of ‘Specialty Steel’ under the Production Linked Incentive (PLI) Scheme with a five-year financial outlay of INR 6322 crore to promote the manufacturing of ‘Specialty Steel’ within the country by attracting capital investment and promoting technology up-gradation in the steel sector.
On March 17, 2023, the Government signed a Memorandum of Understanding (MoU) with 27 companies covering 57 applications for categories under the PLI Scheme. The performance and outcomes of the Production-Linked Incentive (PLI) Scheme for the steel sector as of Q2, which means September 2023 for FY 2023-24 is given below:
Nagarnar Integrated Steel Plant
The NMDC’s 3 MTPA capacity Greenfield integrated steel plant has been set up at Nagarnar, located 16 km from Jagdalpur in the State of Chhattisgarh. The decision to construct the Nagarnar Integrated Steel Plant was taken keeping in view the linkage with iron ore reserves and availability of investible surplus. The plant became functional on August 24, 2023 and has started production of Hot Rolled (HR) coil as final product.
Decarbonization of steel sector
In line with India’s commitments towards net-zero emissions, as enunciated in COP-26, the Ministry of Steel has taken various steps towards decarbonization of the steel sector. It has constituted 13 Task Forces with the engagement of industry, academia, think-tanks, S&T bodies, different Ministries and other stakeholders to discuss, deliberate and recommend upon different levers of decarbonisation of the steel sector.
National Green Mission
The Ministry of New and Renewable Energy (MNRE) has announced a National Green Mission for green hydrogen production and usage. The steel sector has also been made a stakeholder in the mission. The steel sector has adopted the Best Available Technologies (BAT) available globally, in the modernization & expansions projects.
Uploading geo-locations of steel units, data mapping of iron ore mines
The Ministry of Steel has integrated the capabilities of Bhaskaracharya National Institute for Space Applications and Geo-informatics (BISAG-N) into the PM Gati Shakti National Master Plan, uploading geo-locations of more than 2000 steel units to gain insights into steel production facilities. This information will aid in planning railway line extension, inland waterways, highways, ports, and gas pipeline connectivity.
The Ministry has also mapped data of iron ore, manganese ore mines and Iron Ore Slurry Pipelines, allowing for better visibility and management of critical raw material sources. The Ministry has identified 22 key infrastructure deficiencies that need to be addressed in collaboration with other ministries for comprehensive and integrated infrastructure development.
In addition, the Ministry of Steel has also included members of the Central Public Sector Enterprises (CPSE) on PM Gati Shakti-National Master Plan.
Sectoral Plans for Efficient Logistics (SPEL)
The Ministry of Steel has been mandated to create Sectoral Plans for Efficient Logistics (SPEL) in line with the National Logistics Policy of 2022. The initial draft for SPEL was circulated among major steel producers & associations and it was made available in public domain, ensuring a well-informed strategy.
The suggestions received from stakeholders are being examined, and the finalized SPEL will be submitted to the Empowered Group of Secretaries through the Department for Promotion of Industry and Internal Trade.
Steel Scrap Recycling Policy
The Steel Scrap Recycling Policy (SSRP) has been notified in 2019, which provides a framework to facilitate and promote establishment of metal scrapping centers in the country for scientific processing and recycling of ferrous scrap generated from various sources including end of life vehicles (ELVs).
Towards this end, MSTC Limited, a CPSE under Ministry of Steel, in a joint venture (JV) with Mahindra Accelo, has set up MSTC Mahindra Recycling Private Limited (MMRPL). Till date, the JV has established eight Vehicle Scrapping Centers at Greater Noida (NCR), Chennai, Pune, Indore, Ahmadabad, Hyderabad, Guwahati and Bengaluru.
MSTC has also been entrusted to auction Government vehicles older than 15 years on the portal developed by the Company.
Facilitation of National Infrastructure Pipeline Projects
The Ministry of Steel has been proactively taking up issues related to the National Infrastructure Pipeline projects of steel companies with the concerned Central/State Government, Ministries/Departments.
National Steel Policy
The Government has formulated the National Steel Policy 2017, which lays down the broad roadmap for encouraging long term growth for the Indian steel industry, both on demand and supply sides, by 2030-31. The government’s push for infrastructure development through the Gati-Shakti Master Plan, ‘Make-in-India’ initiative for the manufacturing sector and other flagship schemes would provide impetus to the demand and consumption of steel in the country.
In this regard, the Ministry of Steel has set up a committee of experts from the Industry and Technical Institutions (IITs/NITs) for the development of steel intensive designs for the construction of houses and long span road bridges for fostering steel usage in the Housing and Construction sector.
The Union Ministry has also formed a committee of experts from INSDAG, IITs, the Ministry of Road Transport and Highways (MoRTH) and industry experts for the development of designs for long span (30m, 35m, and 40m) steel-based bridges. The design for 30m has been approved and sent to MoRTH for adoption.
The Steel Ministry has asked the Bureau of Indian Standards (BIS) to develop codes for steel intensive construction. As per BIS, a committee has been formed comprising members from the steel industry and the development of codes is in advanced stages.
R&D through Government Budget
The Ministry of Steel seeks R&D Project proposals in joint collaborative mode from reputed Academic Institutions, Research Laboratories and Steel Companies for pursuing R&D projects for development of new alternate processes & technologies to address the burning issues faced by the Iron & Steel Sector such as climate change (green steel production, H2 based steel production, CCUS etc.), waste utilization, resource efficiency, etc. for providing financial assistance under the R&D Scheme “Promotion of Research & Development in Iron & Steel Sector”.
Industrial participation, both in terms of collaboration and financial contribution, is mandatory for the R&D proposals to be considered for funding under the R&D Scheme.
During FY 2023, a total of 4 R&D projects have been approved with a total cost of ₹360.48 lakhs with financial assistance of ₹239.63 lakhs from the Government budget. Additionally, there are currently 14 ongoing R&D projects of the Ministry of Steel.
Steel and Steel products (Quality Control) Order
The Ministry of Steel has introduced Steel Quality Control Order, thereby banning sub-standard/ defective steel products both from domestic & imports to ensure the availability of quality steel to the industry, users and public at large. As per the Order, it is ensured that only quality steel conforming to the relevant BIS standards are made available to the end users.
As on date, 145 Indian Standards have been notified under the Quality Control Order covering carbon steel, alloy steel and stainless steel. In addition, goods & articles made up of steel such as stainless steel pipe & tubes, laminations/ cores of transformers, products of tin plate & tin free steel etc. have also been notified to prevent circumvention of the Steel Quality Control Order.
Formulation of Safety Guidelines for Iron & Steel Sector
After extensive consultations with stakeholders, academia etc, a set of 25 common minimum Safety Guidelines for the Iron & Steel Sector was formulated. These Safety Guidelines are at par with the global standards and are compliant with the requirements of the ILO Code of practice on safety in the Iron & Steel industry. Inputs have also been taken from the World Steel Association’s guidance document on “Safety & Health Principles and Definitions”.
The stakeholders from the Indian steel Industry and its associations have been urged to adopt these guidelines wholeheartedly, to ensure a safe working environment for the workforce. The Ministry of Labour & Employment has also been requested to facilitate mandatory adoption of the Safety Guidelines by the Iron & Steel Industry.
National Metallurgist Awards
The National Metallurgist Award 2022 is a prestigious award given by the Ministry of Steel, Government of India, to recognize the outstanding contributions of metallurgists in the iron and steel sector. The award is given in five categories: Lifetime Achievement, National Metallurgist, Young Metallurgist (Environment), Young Metallurgist (Metal Science), and R&D in Iron & Steel Sector.
CAPEX by CPSEs under Ministry of Steel
During FY 2022-23, Steel CPSEs had a target of INR 11,590.46 crore (RE), against which the CPSEs achieved a CAPEX of INR 10,525.84 crore. The CAPEX in FY 2022-23 was the highest achieved by Steel CPSEs in the past five years.
The CAPEX target for FY 2023-24 is INR 10,300.85 crore (BE). Against this BE target, Steel CPSEs have achieved a CAPEX of INR 5414.51 crore till November 2023 (52.6 percent). The CAPEX progress is being monitored regularly and the CPSEs have been advised to ensure timely completion of projects and to achieve the physical and financial milestones.
Government e-Marketplace (GeM)
Procurement of goods and services through GeM by Steel CPSEs has increased over the year with the value of orders during April-November, 2023 being 20.8% higher over CPLY. Total procurement made between April-November 2023 stands at ₹10,126.90 crore.
MSME Payments
The status of pending payments to MSMEs by CPSEs of the Steel Ministry is being monitored on a weekly basis to ensure that the same may be credited timely. During the current fiscal year April 2023 to November 2023, 98 percent of MSMEs payments have been made within 45 days. During the aforesaid period Steel’s CPSEs have made a payment of ₹4977.82 crore to MSMEs which is approximately 5 percent higher than the payment of INR 4747.53 crore made during the corresponding period of last year.
Mission Recruitment
A dedicated online portal viz. “Vacancy Status Portal” has been put in place by DoPT for reporting and monitoring the progress in filling up the vacancies. Steel CPSEs have taken action to fulfill vacancies expeditiously. Under the Mission, 1389 direct recruitments have been made by Steel CPSEs mainly SAIL, NMDC, KIOCL, MOIL and MECON in 2023.
Swachhata campaign
The Ministry of Steel, along with seven CPSEs – SAIL, RINL, NMDC, MOIL, MECON, KIOCL and MSTC under the Ministry, actively participated in the ‘Special campaign for Disposal of Pending matters’ (SCDPM 3.0), held from October 2 to 31, 2023. During the campaign, 2,34,915 sq ft of space have been freed up by the Ministry of Steel and its CPSEs from the disposal of metallic and non-metallic scrap, paper and e-waste etc. 19432 physical files have been weeded out and 12207 e-files have been closed during the campaign period. In addition, several pending PG appeals/PG grievances, MPs references etc were settled. Further, 261 Swachhta campaigns were carried out by the Ministry and its CPSEs.
Chintan Shivir
The Ministry of steel organized 2 Chintan Shivir in this year on 17th February, 2023 and on 15th December, 2023. During the 1st Chintan Shivir held on 17.2.2023, deliberations were held on Raw material issues of Steel sector and Circular economy in steel sector, besides a session on soft skill and team building. The 2nd Chintan Shivir of the year 2023 was held on 15.12.2023 and topics of Carbon Border Adjustment Mechanism (CBAM): Impact on Steel sector and Use of Emerging Technology –AI in steel sector were discussed.
Consultative Committee for Ministry of Steel
In 2023, four meetings of the Consultative Committee for the Ministry of Steel were held under the chairmanship of the Minister of Steel. In the first meeting of 2023 held on March 6, 2023, discussions were held on Secondary Steel Clusters. Further meetings were held on April 28, 2023 on ‘Logistics: Steel Sector’, on July 24, 2023 on Status of Mutation, Digitisation and Encroachment on land parcels of CPSEs, and on November 23, 2023 on ‘Branding of Indian steel’.
Also Read: Government Mulling Incentives to Fuel Green Transition in Steel Industry
Steel Minister’s Advisory Group
Two advisory groups have been constituted namely Advisory Group of the Ministry of Steel for Integrated Steel Plants (ISPs) and Secondary Steel Industry (SSI) under the chairmanship of Union Minister of Civil Aviation and Steel Shri Jyotiraditya M. Scindia. The advisory groups aim at identifying common issues being faced by the Industry and finding a way for their resolution with active participation from the Ministry. Meetings, at regular intervals are being held for both advisory groups. In this year, two meetings of the advisory group for ISPs and two meetings of the SSIs have been held.
The steel sector plays a pivotal role in crucial sectors such as construction, infrastructure, automobile, engineering and defence. Over the years, the steel sector has witnessed tremendous growth and India has emerged as a global force in steel production and the 2nd largest producer of steel in the world.
