The Indian government has unveiled a new draft steel policy, marking a strategic roadmap to significantly expand the nation's industrial output. The proposal, released for public consultation late Saturday, aims to boost the country’s annual steel production capacity to 604 million metric tons by 2047. This represents a substantial increase from the current capacity, which stands at 220 million tons.
A core focus of the draft is the environmental sustainability of the sector. The policy outlines measures to reduce the industry's average carbon-emission intensity from the current 2.54 tons of carbon dioxide per ton of crude steel to approximately 1.54 tons by 2047. This target aligns with India's broader national goal of achieving net-zero emissions by 2070. To support these objectives, the ministry is addressing the long-term supply of critical raw materials, specifically iron ore and coking coal.
Projections from the steel ministry indicate that demand for iron ore is expected to climb to 772 million tons. In response, the government is exploring strategies to secure access to high-grade reserves, including the formation of joint ventures and the acquisition of foreign assets. Similarly, the ministry anticipates the demand for coking coal to reach 236 million tons. To meet this requirement, the policy emphasizes the need to diversify sourcing channels, ensuring a stable supply chain for the growing sector. The introduction of this draft marks the beginning of a formal consultation process, inviting stakeholders to weigh in on the government's long-term vision for the steel industry.
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