The economic might of a nation can be evaluated by its steel production capability, and India is rapidly making its mark in this regard. The steel sector in India has witnessed remarkable growth over the years, and India has now emerged as a significant player on the global stage, being the second-largest producer of steel worldwide, falling behind only China.
Current State of India’s Steel Sector
India’s steel production is impressive, boasting an output of 125.32 million tonnes (MT) of crude steel and 121.29 MT of finished steel production in FY23. This robust production underlines the significance of steel as a material and its importance to various sectors. The iron and steel industry stands as a cornerstone for crucial sectors such as construction, infrastructure, automobile, engineering, and defense.
In terms of contributions to the national economy, the steel sector is responsible for 2% of India’s GDP in FY 21-22. For production, the major steel-producing states are Odisha, Jharkhand, Chhattisgarh, Karnataka, Maharashtra, Gujarat, and West Bengal.
Government Initiatives to Boost Steel Sector
The Indian government has rolled out several initiatives aimed at pushing the growth of the steel sector. One prominent strategy involves the inclusion of Specialty Steel in the Product-Linked Incentive (PLI) Scheme, with an approved outlay of Rs 6322 crore spanning five years. This initiative aims to promote the manufacturing of specialty steel, attract investments, and foster technological advancements in the sector.
Strategies for Green Steel Making
As part of climate change commitments, the government has initiated task forces to decarbonize the steel sector. These include 13 Task Forces involving industry, academia, think tanks, S&T bodies, various Ministries, and other stakeholders. Furthermore, Ministry of New and Renewable Energy (MNRE) has launched a National Green Mission for green hydrogen production and usage with the steel sector as a stakeholder.
Use of Technology for Steel Production
The steel industry has embraced the use of Best Available Technologies (BAT) on a global scale in their modernization and expansion projects. This adoption of technology is seen through the integration of BISAG-N’s capabilities into the PM Gati Shakti National Master Plan by the Ministry of Steel.
Steel Scrap Recycling Policy
The government has also notified the Steel Scrap Recycling Policy (SSRP) 2019, which outlines a framework to establish metal scrapping centers across the country. This effort facilitates and promotes the scientific processing and recycling of ferrous scrap generated from various sources.
National Steel Policy 2017
The government has drafted the National Steel Policy 2017 which provides a roadmap for long-term growth in the Indian steel industry, both on demand and supply sides, by 2030-31. The government’s push for infrastructure development through Gati-Shakti Master Plan and the ‘Make-in-India’ initiative boosts the demand and consumption of steel in the country.
Steel and Steel Products Quality Control Order
To ensure quality, the Ministry of Steel has introduced the Steel Quality Control Order. The Order aims to ban sub-standard or defective steel products, ensuring that only quality steel, conforming to the relevant BIS standards, are made available to end users.
Safety Measures in the Iron & Steel Sector
Safety also remains a priority within the iron and steel sector. To this end, a set of 25 common Safety Guidelines for the Iron & Steel Sector was formulated. These guidelines maintain global standards and are compliant with the requirements of the ILO Code of Practice.
National Metallurgist Award
The Ministry of Steel also offers the prestigious National Metallurgist Award. This award serves to recognize the outstanding contributions of metallurgists within the iron and steel sector.
Environmental Impact
While steel production is crucial for industrial growth, it does produce substantial amounts of pollution. Key pollutants include carbon monoxide, carbon dioxide, oxides of sulfur, and oxides of nitrogen. However, technological interventions such as air filters, water filters, and closed-container systems can reduce emissions.
Despite its environmental impact, the steel industry continues to be a necessary pillar of industrial and economic development. The government’s initiatives aim to strike a balance between this growth and mitigating the environmental impact, ensuring a sustainable future for the industry.
