**Summary:**
The Ministry of Steel is actively promoting domestic steel production through various policy measures aimed at creating a conducive environment for the sector's development. Key initiatives include the Domestically Manufactured Iron & Steel Products (DMISP) Policy, prioritizing 'Made in India' steel for government procurement, and the Production Linked Incentive (PLI) Scheme for Specialty Steel, designed to boost domestic manufacturing and reduce imports through capital investments. Infrastructure expansion, supported by Union Budget allocations, is also driving increased steel consumption. The government is calibrating Basic Customs Duty on raw materials like Ferro-Nickel and ferrous scrap to lower input costs and has revamped the Steel Import Monitoring System (SIMS) to provide detailed import data to the domestic industry.
The Ministry is also focused on transitioning to green steel technologies. It has released a Taxonomy for Green Steel, defining standards for low-emission steel, and a report titled "Greening the Steel Sector in India: Roadmap and Action Plan," outlining a path towards net-zero emissions by 2070. Under the National Green Hydrogen Mission, the Ministry of Steel has been allocated Rs. 455 crore for pilot projects utilizing green hydrogen in the steel sector until FY 2029-30 and has already awarded five such projects. Existing initiatives like the National Solar Mission and the Carbon Credit Trading Scheme (CCTS), notified by the Ministry of Power, further support the green transition.
This information was provided by the Minister of State for Steel and Heavy Industries and Steel, Shri Bhupathiraju Srinivasa Varma, in a written reply in the Rajya Sabha on August 1, 2025.
Key Entities Referenced
PM Gati Shakti: A national master plan for multimodal connectivity infrastructure project in India.
National Infrastructure Pipeline: An initiative to provide high-quality infrastructure in India through integrated planning and coordinated execution of projects.
Domestically Manufactured Iron Steel Products DMISP Policy: A policy promoting 'Made in India' steel for Government procurement.
Production Linked Incentive PLI Scheme for Specialty Steel: A scheme to promote the manufacturing of 'Specialty Steel' within the country and reduce imports.
Steel Import Monitoring System SIMS: A system for monitoring steel imports to provide granular details to the domestic steel industry.
National Green Hydrogen Mission: A mission to promote the use of green hydrogen in various sectors, including the steel industry, with pilot projects and financial allocations.
National Solar Mission: An initiative launched by the Ministry of New and Renewable Energy to promote the use of solar energy.
Carbon Credit Trading Scheme CCTS: A scheme notified by the Ministry of Power that provides a framework for the functioning of the Indian Carbon Market.
Ministry of Steel
BOOSTING DOMESTIC STEEL PRODUCTION
Posted On: 01 AUG 2025 4:53PM by PIB Delhi
The PM Gati Shakti and National Infrastructure Pipeline envisage an integrated planning and coordinated
execution of infrastructure projects and provide high quality infrastructure in the country. Steel is a
deregulated sector and the government acts as a facilitator for creating a conducive policy environment for the
development of steel sector. Decisions regarding setting up of a steel plant is taken by industry based on
techno-commercial considerations including market demand, raw material availability, logistics requirement
etc. No steel production clusters have been proposed or established. For the development of steel sector,
Government has taken measures which include the following:-
i. Implementation of Domestically Manufactured Iron & Steel Products (DMI&SP) Policy for
promoting 'Made in India' steel for Government procurement.
ii. Launch of the Production Linked Incentive (PLI) Scheme for Specialty Steel to promote the
manufacturing of 'Specialty Steel' within the country and reduce imports by attracting capital
investments.
iii. Thrust in the Union Budget to infrastructure expansion which has contributed to increasing steel
consumption.
iv. Calibration in Basic Customs Duty on raw materials such as Ferro-Nickel and ferrous scrap
imports to reduce input costs.
v. Revamping Steel Import Monitoring System (SIMS) for monitoring of imports to provide
granular details on imports to the domestic steel industry.
The current status of adoption and promotion of green steel technologies and incentives available to assist the
industry in transitioning from carbon-intensive methods are as follows:-
i. Ministry of Steel has released the Taxonomy for Green Steel to provide standards for defining and
categorizing the low emission steel.
ii. Ministry of Steel has released a report titled “Greening the Steel Sector in India: Roadmap and
Action Plan” which provides the future roadmap for green steel and sustainability, towards net-
zero target by 2070.
iii. Ministry of Steel has been allocated Rs.455 crore for implementation of pilot projects for use of
green hydrogen in steel sector till FY 2029-30 under National Green Hydrogen Mission. Ministry
of Steel has awarded five pilot projects for implementation of pilot projects for use of hydrogen in
steel sector under National Green Hydrogen Mission launched by Ministry of New & Renewable
Energy.
iv. National Solar Mission launched by Ministry of New and Renewable Energy in January, 2010,
promotes the use of solar energy.
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v. The Carbon Credit Trading Scheme (CCTS) has been notified by Ministry of Power on 28 June, 2023,
which provides an overall framework for the functioning of the Indian Carbon Market.
This information was given by the Minister of State for Steel and Heavy Industries and Steel, Shri
Bhupathiraju Srinivasa Varma in a written reply in the Rajya Sabha.
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TPJ/NJ(Release ID: 2151383)