New Delhi, Oct 11 (IANS): The government has unveiled a draft steel policy targeting a close to 3-fold jump in India’s crude steel capacity to 604 million tonnes by 2047 from the current level of around 220 million tonnes.
The new policy draws up a roadmap to cut carbon emissions in the steel sector and increase the availability of iron ore and coking coal to meet the anticipated demand. These raw materials account for over 65-70 per cent of the cost of making steel. While India is largely self-sufficient in iron ore, it imports nearly all of its coking coal requirement.
The policy aims to cut the average carbon-emission intensity in the steel sector to around 1.54 tons of carbon dioxide per ton of crude steel by 2047 from the current 2.54 tons, in line with India’s net zero emission goal for 2070.
According to the draft National Steel Policy 2047, the demand for finished steel will rise to 505 MT by 2047 while per capita consumption is expected to go up to 302 kg. The increase in capacity is also expected to result in steel exports rising by 45 MT.
Iron ore demand is projected to rise to 772 MT by 2047 from 299 MT in 2025. The policy proposes securing high-grade iron ore reserves through overseas assets and joint ventures, alongside measures to improve domestic supply and transport infrastructure.
It also proposes to expand slurry pipelines, which transport iron ore in a water-based mixture, to reduce reliance on road and rail transport and improve logistics efficiency.
Coking coal demand is expected to triple to 236 MT. Because India imports 92 per cent of its coking coal, the draft outlines plans to reduce import dependence through domestic mining, expand domestic coal washeries, go for long-term supply arrangements, and leverage AI to optimise coal blends.
Other raw materials important for the steel sector, like manganese, limestone, etc., will also remain in policy focus to ensure long-term resource sustainability.
The proposed roadmap includes improving energy efficiency, increasing renewable electricity use, promoting scrap-based steelmaking and adopting hydrogen-based technologies and carbon capture. These measures will need to accompany capacity expansion to help the industry meet its emissions target.
The policy also focuses on value-added steel such as stainless steel and speciality steel to reduce dependence on imported raw materials and technology.
Steel quality will be strengthened through revised Indian Standards and conformity assessment mechanisms. Digital transformation is identified as an emerging priority.
This includes a focus on digital infrastructure, common data standards and Industry 4.0 adoption, driven by trusted AI and autonomous production systems.
International cooperation in the steel sector will become a priority area in the coming years, especially for raw material diversification, steel trade and technology collaboration.
India, the second-largest producer and consumer of steel, will collaborate with other countries to take the sector forward in the right direction, the draft stated.
The post India targets 604 MT steel capacity by 2047 first appeared on Nagaland Post.