Executive Summary:
This document outlines the Indian government's initiatives to expand steel production capacity and promote circular economy practices in the steel industry. The aim is to reach a production capacity of 300 million tonnes by 2030. Initiatives include policies for promoting domestic steel use, incentivizing specialty steel production, and maximizing scrap recycling while minimizing environmental impact.
Key Points / Main Content:
Steel Production Capacity Enhancement:
* The government acts as a facilitator for the steel sector, creating a conducive policy environment.
* The Domestically Manufactured Iron & Steel Products (DMISP) Policy promotes "Made in India" steel for government procurement.
* The Production Linked Incentive (PLI) Scheme for Specialty Steel promotes domestic manufacturing and reduces imports.
* Infrastructure expansion through the Union Budget increases steel consumption.
* Calibration in Basic Customs Duty on Ferro Nickel and ferrous scrap imports reduces input costs.
* The revamped Steel Import Monitoring System (SIMS) provides granular details on imports.
* Steel Quality Control Orders ban substandard steel products in the domestic market and imports.
Circular Economy and Scrap Recycling:
* The Steel Scrap Recycling Policy, 2019 provides a coordination framework to promote ferrous scrap recycling.
* The Vehicle Scrapping Policy includes incentives/disincentives for phasing out older, unfit vehicles.
* Rules for Registration and Functions of Vehicle Scrapping Facility (RVSF) issued by MoRTH for depollution and dismantling of End-of-Life Vehicles (ELVs).
* The Hazardous and Other Wastes Management and Transboundary Movement Rules, 2016 ensure safe handling and disposal of hazardous waste.
* The Environment Protection End-of-Life Vehicles Rules, 2025 establishes a framework for managing ELVs, including Extended Producer Responsibility (EPR).
* The Recycling of Ships Act, 2019 regulates and promotes safe and environmentally sound recycling of ships.
Impact Analysis:
Government:
* Impact: Responsible for implementing and overseeing policies related to steel production, scrap recycling, and environmental regulations.
* Action Required: Continue to develop and refine policies to support the steel industry and promote circular economy practices.
Steel Industry:
* Impact: Must comply with quality control orders, utilize domestically manufactured steel, and participate in scrap recycling initiatives.
* Action Required: Increase production of specialty steel, adopt circular economy practices, and ensure compliance with quality standards.
Vehicle Producers:
* Impact: Subject to Extended Producer Responsibility (EPR) under the Environment Protection End-of-Life Vehicles Rules, 2025.
* Action Required: Meet annual vehicle scrapping targets based on vehicle type and materials recovered.
End-of-Life Vehicle (ELV) Facilities:
* Impact: Subject to rules for Registration and Functions of Vehicle Scrapping Facility (RVSF).
* Action Required: Establish the procedures and infrastructure facilities required for depollution and dismantling of ELVs for further recovery of metal and other materials under environmental regulations.
Users/Public:
* Impact: Availability of quality steel products and a reduction in environmental impact from steel production and vehicle waste.
* Action Required: Support the use of quality steel products and participate in vehicle scrapping programs.
Key Entities Referenced
Ministry of Steel: The Indian government ministry responsible for the development of the steel sector.
Production Linked Incentive PLI Scheme for Specialty Steel: A government scheme to promote the manufacturing of 'Specialty Steel' within India and reduce imports by attracting capital investments.
Domestically Manufactured Iron Steel Products DMISP Policy: A policy for promoting Made in India steel for Government procurement.
Steel Import Monitoring System SIMS: A system for monitoring steel imports to provide granular details to the domestic steel industry.
Steel Scrap Recycling Policy, 2019: A policy that provides a coordination framework with various Ministries to facilitate and promote recycling of ferrous scrap.
Ministry of Road Transport and Highways MoRTH: The Indian government ministry responsible for road transport and highways.
Vehicle Scrapping Policy: A policy that includes incentives and disincentives for phasing out older, unfit polluting vehicles.
Environment Protection EndofLife Vehicles Rules, 2025: Rules establishing a framework for managing End-of-Life Vehicles (ELVs) in an environmentally sound manner, mandating Extended Producer Responsibility (EPR).
GOVERNMENT OF INDIA
MINISTRY OF STEEL
LOK SABHA
UNSTARRED QUESTION NO. 238
FOR ANSWER ON 22.07.2025
EXPANSION OF STEEL PRODUCTION CAPACITY
238. SHRI P C MOHAN:
SHRI BHARTRUHARI MAHTAB:
SHRI MAHESH KASHYAP:
Will the Minister of STEEL be pleased to state:
(a) the details of the scheme to enhance steel production capacity to 300 million tonnes
by 2030 and the corresponding raw material requirements; and
(b) the details of the initiatives to promote circular economy practices in the steel
industry to maximise scrap recycling and minimise environmental impact?
ANSWER
THE MINISTER OF STATE IN THE (SHRI BHUPATHIRAJU SRINIVASA VARMA)
MINISTRY OF STEEL
(a) 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. The
Government has taken several measures for development of steel sector, such as:-
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 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.
vi. Introduction of Steel Quality Control Orders thereby banning sub-standard/
defective steel products in the domestic market as well as imports to ensure the
availability of quality steel to the industry, users, and public at large.
Contd……2/-: 2 :
(b) The initiatives taken by the Government to promote circular economy practices in
the steel industry to maximise scrap recycling and minimise environmental impact are
as follows:-
i. 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.
ii. The Ministry of Road Transport and Highways (MoRTH) has formulated the
Vehicle Scrapping Policy that includes a system of incentives/disincentives for
creation of an ecosystem to phase out older, unfit polluting vehicles. Under the
policy, MoRTH has issued rules for Registration and Functions of Vehicle
Scrapping Facility (RVSF), which provides the procedures and infrastructure
facilities required for de-pollution and dismantling of End-of-Life Vehicles (ELVs)
for further recovery of metal and other materials under environmental regulations.
iii. The Government of India has notified the Hazardous and Other Wastes
(Management and Transboundary Movement) Rules, 2016 to ensure safe
handling, storage, recycling, utilisation, treatment and disposal of hazardous and
other wastes in an environmentally safe manner.
iv. Ministry of Environment, Forest & Climate Change has introduced the
Environment Protection (End-of-Life Vehicles) Rules, 2025, which establishes a
framework for managing End-of-Life Vehicles (ELVs) in an environmentally sound
manner and mandates Extended Producer Responsibility (EPR), requiring vehicle
producers to meet annual scrapping targets based on the type of vehicle and
materials recovered.
v. Recycling of Ships Act, 2019 has been notified by Ministry of Shipping, Ports and
Waterways with aims to regulate and promote the safe and environmentally sound
recycling of ships.
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