The government is formulating a new steel policy aimed at boosting capacity additions to achieve 600 million tonne of capacity by 2047 and enhancing industry competitiveness while addressing key import challenges, Steel Secretary Sandeep Poundrik said on Tuesday.

The new National Steel Policy (NSP) will be put in the public domain for stakeholder feedback in about a week, the secretary said at an event here.

The NSP will set a roadmap through 2047 for the Indian steel industry to reach over 600 million tonne of capacity by 2047, with a higher share of value-added and special steel.

The official also said an incentive scheme is being formulated with an outlay of ₹5,000 crore for MSME steel units to encourage emissions reduction in the steel sector.

Speaking with reporters at the Manufacturing Confluence 2026 event organised by CII, Poundrik said the National Steel Policy will be made public in about a week for stakeholder comments.

As far as imports are concerned, the policy also includes measures to discourage cheap, substandard imports, including safeguard measures like safeguard duty, anti-dumping duty, etc., as well as to make the Indian steel industry, especially small steel players, competitive in terms of technology and price.

The government had introduced a National Steel Policy in 2017, aimed at increasing India's steel manufacturing capability to 300 MT by 2030 along with other parameters such as consumption, ensuring raw material availability, among others.

However, according to the official, the 2017 policy "needed a relook" taking current challenges and requirements.

The Steel Secretary said that since 2017, emerging priorities like artificial intelligence, machine learning and technical upgrades require greater focus. Additionally, India's global standing in the steel sector has risen with increasing consumption and capacity.

India is the only country in the world growing in capacity and consumption at such speed, he said, adding that issues like decarbonization and sustainability remain.

"So, that is why we are bringing a new policy so that we have a road map for the next two decades up to 2047," Poundrik said.

According to a presentation by the official, the new policy aims at achieving 604 MT steel capacity by 2047.

"We are proposing a scheme which is called Viksit Bharat Ispat, which is only targeted at small steel producers, where they will be given an incentive linked to their production, which will be dependent on the reduction of carbon emissions. Now, reduction of carbon emissions can only be done by using better technology, by using better raw material and more use of renewable energy," he said in reply to a question on supporting MSMEs in the sector.

The scheme, having an outlay of Rs 5,000 crore, is likely to be approved by the competent authority in the near future, he said. For bigger steel producers, Poundrik said the CCTS (Carbon Credit Trading Scheme) is already going to be notified very soon which will ensure that they reduce their carbon emissions.

On quotas put by the EU, the secretary said the ministry is currently studying the impact of the move on the Indian steel industry.

"There is already a duty for a period of three years and presently I do not see Indian steel industry is facing any price differential based on the prices going on in domestic prices. So, presently that seems to be working," he said in reply to a question if government is considering any fresh measures to discourage imports.

Published on September 29, 2026