The government, late on Saturday, introduced a draft steel policy for public consultation which targets 604 million metric tons of steel capacity by 2047 from the current 220 million tons level, as reported by Reuters News.Reuters had earlier reported that the policy gives plans to reduce emmissions from sectors and improve access to coking coal and iron ore which are major raw materials and are anticipated to meet expected demand.
The draft steel policy is looking to slash the industry’s average carbon-emission intensity to around 1.54 tons of carbon dioxide for every ton of crude steel by 2047 from the present 2.54 tons, coming in tandem with the country’s net zero emission goal for 2070, as reported by Reuters.
India’s steel ministry is expecting iron ore demand to reach 772 million tons and is planning to keep access secured for high-grade reserve by looking for joint ventures and foreign assets, according to the report.
The ministry further expects coking coal demand at 236 million tons, with India planning to diversify sourcing.
According to a PTI report, the draft policy stated that manufacturing and infrastructure will remain the primary drivers of steel demand, as Construction and infrastructure currently account for about 67 per cent of steel consumption, while automobiles, engineering goods, appliances and packaging contribute another 28 per cent.
The latest policy projected coking coal demand at 236 million tonnes by 2047, up from 72 million tonnes in 2025, while iron ore demand is projected at 772 million tonnes, up from 299 MT in 2025. The NSP 2017 had estimated India’s coking coal demand at 99 MT and coking coal at 299 MT.