Government Unveils Steel Policy to Cut Carbon and Boost Exports

A draft National Steel Policy released by the Union Cabinet outlines ambitious goals for capacity expansion, carbon reduction and export growth. By 2047, crude steel capacity is projected to hit 604 million tonnes, more than double today’s level.

The document sets a clear target to lower average carbon emissions from 2.54 tonnes of CO₂ per tonne of steel to 1.54 tonnes, mirroring India’s broader climate commitments. To achieve this, the policy advocates for increased use of renewable power, hydrogen‑based smelting, scrap‑based production and carbon‑capture technologies.

Supply security is central to the roadmap. Iron ore demand is expected to rise from 299 million tonnes in 2025 to 772 million tonnes by 2047. The government plans to secure high‑grade ore through overseas concessions and joint ventures, while bolstering domestic haulage and storage infrastructure.

Coking coal requirements could reach 236 million tonnes, prompting a focus on expanding local mining, upgrading washery facilities and negotiating long‑term import contracts. AI‑enabled coal blending is proposed to improve efficiency and reduce emissions.

The policy also encourages the development of value‑added products such as stainless and specialty steels, aiming to reduce dependence on imported technologies and raw materials. A digital transformation agenda—covering Industry 4.0, shared data standards and autonomous production—underpins the entire strategy.