The Indian government has unveiled a draft of the National Steel Policy 2047, aiming to boost the country's crude steel capacity to 604 million tonnes by the year 2047. This initiative is designed to enhance industry competitiveness and tackle significant import challenges.
Key Objectives of the Policy
According to the draft, the demand for finished steel is projected to rise to 505 million tonnes by 2047, with per capita consumption expected to reach 302 kg and steel exports increasing to 45 million tonnes. Notably, raw materials account for approximately 65-70% of steelmaking costs.
While India is largely self-sufficient in iron ore, it currently imports about 92% of its coking coal requirements. The new policy aims to reduce this import dependence through various strategies, including:
- Domestic mining
- Washery expansion
- Asset acquisition
- Long-term supply arrangements
- AI-based optimization of coal blends
Additionally, the policy will focus on other essential raw materials for the steel sector, such as manganese and limestone, to ensure long-term resource sustainability.
Support for the Secondary Steel Sector
The secondary steel sector, which consists of around 2,550 units and accounts for nearly 47% of crude steel production capacity, will receive support aimed at:
- Enhanced raw material access
- Technology improvement
- Skill development
- Safety measures
Emphasis on Decarbonisation
Decarbonisation is a crucial pillar of the policy, as the steel sector contributes about 10-12% of India's CO2 emissions. The average emission intensity stands at 2.54 tonnes of CO2 per tonne of crude steel, significantly higher than the global average of 1.92 tCO2/tcs. The NSP Vision 2047 outlines a phased transition to achieve Net Zero by 2070, focusing on:
- Improved energy efficiency
- Renewable electricity
- Greater scrap utilization
- Use of hydrogen
