**Executive Summary**
This document is a response to Unstarred Question No. 1787 in Lok Sabha regarding the government's comprehensive policy to enhance domestic steel production capacity. The answer, provided by the Minister of State in the Ministry of Steel, outlines the government's efforts to promote steel production, particularly in Rajasthan, and across the country. The response was provided on 10.02.2026.
**Key Points / Main Content**
* **Steel Sector and MSMEs:**
* Currently, 26 steel-based MSME units are operating in Rajasthan.
* Steel is a deregulated sector.
* **Government's Role:**
* The government acts as a facilitator by creating a conducive policy environment for the development of the steel sector.
* Decisions regarding investment, capacity addition, employment, and setting up plants are based on techno-commercial analysis.
* **Measures to Enhance Steel Production:**
* Implementation of the Domestically Manufactured Iron & Steel Products (DMI&SP) Policy to promote "Made in India" steel for government procurement.
* Launch of the Production Linked Incentive (PLI) Scheme for Specialty Steel to promote manufacturing within the country, reduce imports, and attract capital investments.
* Increased focus on infrastructure expansion in the Union Budget, contributing to increased steel consumption.
* Calibration of Basic Customs Duty on raw materials (e.g., Ferro Nickel, ferrous scrap) to reduce input costs.
**Impact Analysis**
**Stakeholder: Steel-Based MSMEs (Particularly in Rajasthan)**
* **Impact:** Affected by policies promoting domestic steel production, government's facilitation role, and access to raw materials.
* **Action Required:** Monitor government initiatives, adapt to policy changes, and leverage available support for raw materials and expansion.
**Stakeholder: Specialty Steel Manufacturers**
* **Impact:** Beneficiaries of the PLI scheme, which aims to boost production and attract investments.
* **Action Required:** Apply for the PLI scheme, strategize investments to increase production of specialty steel, and reduce reliance on imports.
**Stakeholder: Government Procurement Agencies**
* **Impact:** Required to prioritize domestically manufactured iron and steel products.
* **Action Required:** Implement the DMI&SP policy, ensure compliance, and adjust procurement processes.
**Stakeholder: Infrastructure Developers**
* **Impact:** Benefiting from government's thrust on infrastructure expansion, leading to increased steel consumption.
* **Action Required:** Plan and execute infrastructure projects efficiently, leveraging government investments and ensuring sufficient steel availability.
**Stakeholder: Importers of Raw Materials (Ferro Nickel, Ferrous Scrap)**
* **Impact:** Affected by calibration of Basic Customs Duty, which aims to reduce input costs.
* **Action Required:** Monitor changes in customs duties, adjust sourcing strategies, and potentially benefit from lower input costs.
Key Entities Referenced
Production Linked Incentive (PLI) Scheme for Specialty Steel: A scheme to promote the manufacturing of specialty steel in India.
Domestically Manufactured Iron & Steel Products (DMI&SP) Policy: Policy for promoting 'Made in India' steel for Government procurement.
Ministry of Steel: The Indian government ministry responsible for policies related to the steel industry.
Rajasthan: A state in India where steel based MSME units are operating.
Union Budget: The annual financial statement of India, with thrust given to infrastructure expansion to increase steel consumption
GOVERNMENT OF INDIA
MINISTRY OF STEEL
LOK SABHA
UNSTARRED QUESTION NO. 1787
FOR ANSWER ON 10.02.2026
COMPREHENSIVE POLICY TO ENHANCE DOMESTIC STEEL PRODUCTION
CAPACITY
1787. SHRI HARISH CHANDRA MEENA:
Will the Minister of STEEL be pleased to state:
(a) whether the Government is implementing any comprehensive policy to enhance
domestic steel production capacity in view of the increasing infrastructure projects in
the country, if so, the details thereof;
(b) the number of steel based small and medium scale industries units operating in
Rajasthan at present along with the district-wise details of the special steps taken for
continuous supply of raw materials to these units;
(c) whether assistance has been provided under any scheme for setting up steel-
related small scale industries/fabrication units in the Tonk-Sawai Madhopur
Parliamentary Constituency; and
(d) if so, the details of employment generation, Unit-wise?
ANSWER
THE MINISTER OF STATE IN THE (SHRI BHUPATHIRAJU SRINIVASA VARMA)
MINISTRY OF STEEL
(a)to(d): As per available information, 26 steel-based MSME units are operating in
Rajasthan. Steel is a de-regulated sector and the Government acts as a facilitator by
creating a conducive policy environment for the development of the steel sector across
all states in the country, including Rajasthan. Decisions such as investment, capacity
addition, employment, setting up of a steel plant etc. are based on techno-commercial
analysis of companies.
Government has taken several measures to enhance domestic steel production
capacity and raw security throughout the country including Rajasthan which include
the following:-
1. Implementation of Domestically Manufactured Iron & Steel Products (DMI&SP)
Policy for promoting 'Made in India' steel for Government procurement.
2. 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.
3. Thrust in the Union Budget to infrastructure expansion which has contributed to
increasing steel consumption.
4. Calibration in Basic Customs Duty on raw materials such as Ferro Nickel and ferrous
scrap imports to reduce input costs.
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