The Ministry of Steel’s draft National Steel Policy-Vision 2047 envisages India’s crude steelmaking capacity rising nearly threefold to 604 million tonnes (MT) by 2047, with finished steel consumption projected at 505 MT, as the government seeks to expand domestic production, secure raw materials and reduce the industry’s carbon footprint.
The draft policy projects crude steel production at 531 MT by 2047, up from 170 MT in 2025, and per-capita finished steel consumption at 302 kg, up from 116 kg currently. It also sets an export target of 45 MT.
The projections are based on assumed annual gross domestic product (GDP) growth of around 7 per cent and capacity utilisation of 88 per cent, according to the draft policy document. Capacity utilisation in the steel sector stood at 77 per cent in 2025.
Meeting the targets will require a substantial expansion in raw material availability. The policy projects iron ore requirements more than doubling to 772 MT by 2047 from 299 MT in 2025, while coking coal demand is expected to increase threefold to 236 MT from 72 MT. Requirements for manganese ore are projected to reach 34 MT, while those for limestone and dolomite combined are estimated at 128 MT.
The roadmap proposes securing raw materials through measures including reducing import dependence through domestic mining and overseas asset acquisitions.
“Raw materials account for around 65-70 per cent of steelmaking costs. While India is largely self-sufficient in iron ore, it imports nearly 92 per cent of its coking coal requirement. The policy seeks to reduce import dependence through domestic mining, washery expansion, asset acquisition, long-term supply arrangements, and AI-based optimisation of coal blends,” the draft said.
The current National Steel Policy-2017 has a horizon till 2023-31. The priorities of the steel sector have evolved since 2017, with the sector witnessing domestic growth, alongside emerging priorities such as carbon-emission reduction, capacity expansion, import substitution and adoption of digital technologies, the steel ministry said. The ministry has invited feedback and suggestions from the industry on its website.
It also calls for expanding domestic processing and improving the movement of minerals to steelmaking centres.
A key infrastructure proposal is to expand the capacity of iron ore slurry pipelines from around 18 million tonnes per annum (MTPA) currently to more than 299 MTPA by 2047. Currently, only 1 per cent of iron ore is transported through slurry pipelines, while most movement relies on rail and road.
“The expansion is constrained by multiple regulatory clearances, land acquisition issues, local opposition, and the absence of a dedicated regulatory framework,” the draft policy said, adding that “slurry pipelines require significant water and face environmental concerns.”
The draft proposes facilitating clearances through a single-window system and providing viability gap funding for iron ore and coking coal slurry pipelines.
The draft comes as the government seeks to provide a longer-term direction for an industry facing the twin challenges of expanding capacity and lowering emissions. The policy aims to reduce average carbon dioxide emissions intensity in steelmaking to 1.54 tonnes per tonne of crude steel by 2047, from 2.54 tonnes currently, a reduction of about 39 per cent.
Currently, India’s steel emission intensity is “significantly higher” than the global average of about 1.92 tonnes of carbon dioxide emissions per tonne of crude steel. The steel sector accounts for an estimated 10-12 per cent of India’s carbon dioxide emissions, according to the draft policy.
The proposed transition is phased. The initial years would focus on energy and resource efficiency, renewable energy and greater scrap use. The roadmap envisages wider adoption of advanced technologies in the following years, followed by greater use of green-hydrogen-based direct reduced iron and carbon capture, utilisation and storage (CCUS). CCUS is also proposed for addressing residual process emissions in the later stages.
The policy envisages increasing steel scrap availability to 123 MT by 2047-48 from 36 MT in 2025-26. It proposes a mission-mode drive on the lines of Swachhata Abhiyan to collect scrap from household goods, obsolete products, construction and demolition waste, industrial assets and end-of-life vehicles.
Extended producer responsibility mechanisms for end-of-life vehicles, construction and demolition waste and consumer durables are also proposed, alongside measures relating to ship recycling.
The draft also identifies low utilisation of domestic coking coal washing capacity as an area requiring attention. Against operational washing capacity of about 39 MTPA, actual output is estimated at around 6 MT, compared with feed of about 17 MT, with yields of 40 per cent. The policy proposes expanding washeries, improving coal blending and grade mapping, and exploring overseas assets to help meet projected demand.
The policy proposes the creation of the Steel Industry Safety Council (SISC) as the apex institutional body to promote safety, occupational health, process safety, disaster management and implementation of uniform safety standards across the steel sector.
The SISC will be supported by a dedicated Steel Industry Safety Directorate (SISD) comprising domain experts from the steel industry.
The policy also proposes using artificial intelligence to monitor substandard steel imports. To improve the sector’s technological capabilities, the draft envisages a Steel Digital Centre of Innovation under the Steel Research and Technology Mission of India, along with a national steel data platform covering production, quality, energy, emissions, logistics and raw materials.
