The Indian Ministry of Steel has unveiled a comprehensive strategy aimed at making the country a global leader in steel production and exports. In its 2024 Year-End Review, the Ministry emphasized its focus on key areas such as raw materials, technology, investments, and exports, aligning the Indian steel industry with international standards.
One of the Ministry's primary efforts is the launch of the "Green Steel Mission," a 15,000 crore INR (USD 1.8 billion) initiative designed to advance decarbonization in steel production and support India's net-zero goals. This mission includes programs such as the Production-Linked Incentive (PLI) scheme for green steel, incentives for the adoption of renewable energy, and prioritization of green steel supply. Additionally, in collaboration with the National Green Hydrogen Mission, pilot projects exploring hydrogen as a potential alternative in steel production have been allocated 455 crore INR (USD 54 million).
As part of the Green Steel Mission, a roadmap and action plan for decarbonizing steel production will be developed, along with the launch of a Green Steel Taxonomy to standardize low-emission steel and the implementation of a Steel Scrap Recycling Policy to improve resource efficiency.
To reduce dependence on imports and increase domestic production, the Production Linked Incentive (PLI) Scheme for Specialty Steel has attracted 27,106 crore INR (USD 3.3 billion) in investment. This initiative aims to produce 7.90 million tons of special steel and create 14,760 new jobs. As of October 2024, investments of 17,581 crore INR (2.1 billion USD) have been made, and over 8,660 new jobs have been created.
Furthermore, the government has introduced various supporting policies to create a favorable environment for steel production, including the extension of tax exemptions on iron ore until March 2026 and reductions in customs duties on Ferro-Nickel for the stainless steel industry. The Ministry has also taken steps to address local coking coal shortages by forging partnerships with Russia and exploring opportunities in Mongolia.
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