New draft steel policy targets 604 million tonnes capacity by 2047

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The Economic Times daily newspaper is available online now. Read Today's Paper New draft steel policy targets 604 million tonnes capacity by 2047ET BureauLast Updated: Oct 12, 2026, 12:24:00 AM ISTSynopsis

India has unveiled a new draft national steel policy targeting 604 million tonnes capacity by 2047. The initiative also aims to increase exports to 45 million tonnes in two decades. Measures will focus on reducing carbon emissions and promoting technology indigenisation in steel production. Infrastructure development will be emphasized alongside research, safety, and workforce improvements.

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Loading...×New Delhi: India rolled out a new draft national steel policy targeting 604 million tonnes capacity by 2047 from around 220 million tonnes currently and a per capita consumption of 302 kg from 116 kg late Saturday. The draft policy aims to raise steel exports to 45 million tonnes in the next two decades.

The country's steel sector needs to move beyond capacity-led growth towards value creation, technological advancement and integration across the value chain, the draft policy said. The focus will be on indigenisation of technology and capital goods for steel production. The new policy seeks to promote greater use of steel in infrastructure, housing, transportation, renewable energy and emerging manufacturing sectors.

Through measures such as high scrap utilisation, hydrogen-based direct reduced iron, biochar and gasified coal substitution, and carbon capture utilisation and storage, the ministry aims to cut the sector's average carbon emission intensity to around 1.54 metric tonnes of carbon dioxide emitted per metric tonne of crude steel produced (tCO₂/tcs) from 2.54 tCO₂/tcs, in line with India's net zero target.

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PM Gati Shakti will be actively leveraged to map raw material availability, including iron ore, coal, manganese ore and other key inputs, against existing and potential steel consumption centres to identify optimal locations for new steel plants and capacity expansion. Railways are projected to carry about 49% of iron ore from 42% currently, while roadways are expected to carry around 9% from 28% now, removing the congestion and delays on roads. Slurry pipeline capacity is projected to be over 299 million tonnes a year by 2047.

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Similarly, railways are expected to carry 62% of finished steel from 40% now, while roadways share is expected to fall to 35% from 59%. The draft also seeks to prevent sub-standard steel imports, expand domestic production of high-value steel, and modernise secondary steel industries and MSMEs.

Other priorities include increasing the use of artificial intelligence and automation, strengthening research and innovation, improving industrial safety and developing a skilled workforce. It also proposes strategic partnerships with emerging economies to secure critical raw materials, facilitate technology transfers, and expand India's presence in the global steel value chain.

Also Read | Domestic steel demand to rise; in talks with the Netherlands government over steel production: Tata Steel CEO

India has identified countries for collaboration based on opportunities in the steel value chain. Memoranda of understanding are already in place with Russia, Japan, South Korea, Brazil and Indonesia. Partnerships may include long-term offtake agreements, mining asset acquisitions, beneficiation plants and strategic joint ventures.

The policy also provides for identifying new opportunities for international collaboration.
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