**Executive Summary**
This document is the answer provided by the Minister of Steel to Unstarred Question No. 2562 in the Lok Sabha, addressed on December 16, 2025. The question pertains to crude steel production capacity under the National Steel Policy (NSP). The response outlines the current status of the steel sector against projections under NSP 2017, and highlights initiatives to promote the steel sector.
**Key Points / Main Content**
* **National Steel Policy (NSP) 2017:**
* Introduced to guide the steel sector in India, including Uttar Pradesh.
* Aims to create a technologically advanced and globally competitive steel industry.
* **Steel Sector Statistics:**
* Total crude steel capacity (2024-25): 200.33 million tonnes, against a projected 300 million tonnes for 2030-31 under NSP 2017.
* Total crude steel demand/production (2024-25): 152.18 million tonnes, against a projected 255 million tonnes for 2030-31 under NSP 2017.
* Total finished steel demand/production (2024-25): 146.69 million tonnes, against a projected 230 million tonnes for 2030-31 under NSP 2017.
* Per Capita Finished Steel Consumption (2024-25): 108 kg, against a projected 158 kg for 2030-31 under NSP 2017.
* Crude steel capacity and production in Uttar Pradesh are 3.295 and 2.227 million tonnes, respectively.
* **Government Initiatives:**
* Implementation of Domestically Manufactured Iron & Steel Products (DMI&SP) Policy to promote 'Made in India' steel.
* Launch of the Production Linked Incentive (PLI) Scheme for Specialty Steel.
* Release of a report titled "Greening the Steel Sector in India: Roadmap and Action Plan."
* Implementation of the Steel Scrap Recycling Policy, 2019.
* Enactment of the Recycling of Ships Act, 2019.
* **Union Budget 2024-25 Measures:**
* Basic Customs Duty (BCD) reduced from 2.5% to Nil on Ferro-Nickel and Molybdenum ores and concentrates.
* BCD exemption on Ferrous Scrap continued up to March 31, 2026.
* Exemption on specified raw material for manufacture of Cold Rolled Grain Oriented (CRGO) steel continued up to March 31, 2026.
**Impact Analysis**
**Stakeholder: Steel Industry in Uttar Pradesh**
**Impact**
The Steel Industry in Uttar Pradesh is impacted by the NSP 2017 targets, the various government initiatives aimed at promoting the steel sector (DMI&SP, PLI scheme), and the budgetary measures. The current crude steel capacity and production levels in Uttar Pradesh (3.295 and 2.227 million tonnes, respectively) will need to grow significantly to meet the NSP 2017 targets for 2030-31.
**Action Required**
Steel companies in Uttar Pradesh should take advantage of the government schemes to increase production and align to the NSP 2017 targets.
**Stakeholder: Domestic Steel Manufacturers**
**Impact**
They are directly impacted by the changes in Basic Customs Duty (BCD) and the exemptions for Ferrous Scrap and raw material for CRGO steel, as these measures are intended to support domestic manufacturing and boost production.
**Action Required**
Manufacturers should leverage these changes in import duties to potentially lower production costs and improve competitiveness.
Key Entities Referenced
National Steel Policy (NSP), 2017: A policy providing direction to the steel sector in India, including Uttar Pradesh, to create a technologically advanced and globally competitive steel industry.
Uttar Pradesh: A state in India, specifically mentioned regarding steel production, capacity, and initiatives under the National Steel Policy.
Ministry of Steel: The Indian government ministry responsible for the steel sector and the subject of the Lok Sabha question.
Production Linked Incentive (PLI) Scheme for Specialty Steel: A scheme to promote manufacturing of value-added steel within the country.
Steel Scrap Recycling Policy, 2019: A policy to facilitate and promote recycling of ferrous scrap.
GOVERNMENT OF INDIA
MINISTRY OF STEEL
LOK SABHA
UNSTARRED QUESTION NO. 2562
FOR ANSWER ON 16.12.2025
CRUDE STEEL PRODUCTION CAPACITY UNDER THE NATIONAL STEEL
POLICY
2562. Ms. IQRA CHOUDHARY:
SHRI PUSHPENDRA SAROJ:
Will the Minister of STEEL be pleased to state:
(a) the current crude steel production capacity, per-capita steel consumption and
number of operational and non-operational steel units under the National Steel Policy
(NSP) 2017, State-wise and district-wise for Uttar Pradesh;
(b) the details of NSP-linked infrastructure created, component-wise, State-wise and
district-wise for Uttar Pradesh;
(c) whether the Government has reviewed raw material availability (iron ore, coking
coal, pellets) for UP-based MSME steel units and its impact on production and
employment and if so, the findings thereof;
(d) the progress of technology-upgradation, energy-efficiency and scrap-recycling
initiatives in UP steel units under NSP along with funds allocated, sanctioned and
released; and
(e) whether any project proposals received from Uttar Pradesh for cluster
development, recycling units or R&D support are pending and if so, the reasons
therefor and the timeline of approval?
ANSWER
THE MINISTER OF STEEL (SHRI H.D. KUMARASWAMY)
(a)to(e): National Steel Policy (NSP), 2017, was introduced to provide policy
direction to the steel sector in India including Uttar Pradesh and to create a
technologically advanced and globally competitive steel industry that promotes
economic growth. The current status of the steel sector vis-a vis projections in National
Steel Policy (NSP), 2017, is given below:-
In Million Tonnes
S. Parameter Projections for the Current Status
No. year (2030-31) under (2024-25)
NSP, 2017
1 Total crude steel capacity 300 200.33
2 Total crude steel demand/ production 255 152.18
3 Total finished steel demand/ production 230 146.69
4 Per Capita Finished Steel Consumption 158 108
(in kg)
Contd….2/-: 2 :
Crude steel capacity and crude steel production of Uttar Pradesh are 3.295
million tonnes and 2.227 million tonnes respectively.
Steel is a deregulated sector and the Government acts as a facilitator by
creating a conducive policy environment for the development of the steel sector.
Government has taken several measures for raw material availability, technology-
upgradation, energy-efficiency as well as to facilitate and promote scrap recycling in
India including Uttar Pradesh 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 value-added steel within the country and reduce imports
by attracting capital investments.
3. Ministry of Steel has released a report titled "Greening the Steel Sector in India:
Roadmap and Action Plan" in alignment with the recommendations of the 14 Task
Forces constituted by this Ministry for this purpose which provides the future roadmap
for green steel and sustainability, towards net-zero target by 2070.
4. The Steel Scrap Recycling Policy, 2019 provides a coordination framework with
various Ministries to facilitate and promote recycling of ferrous scrap generated from
various sources.
5. The Recycling of Ships Act, 2019 notified with aims to regulate and promote
the safe and environmentally sound recycling of ships.
6. In the Union Budget 2024-25, following measures were taken to support
domestic manufacturers and boost domestic steel manufacturing:-
a. Basic Customs Duty (BCD) has been reduced from 2.5% to Nil on Ferro-Nickel
and Molybdenum ores and concentrates which are raw materials for steel industry.
b. BCD exemption on Ferrous Scrap has been continued upto 31.03.2026.
c. The exemption on specified raw material for manufacture of Cold Rolled Grain
Oriented (CRGO) steel has been continued up to 31.3.2026.
*****