India's draft steel policy charts path to 604 MT capacity by 2047

India's steel industry is set for significant expansion under a draft policy framework that targets 604 million tonnes of production capacity by 2047, up from current levels. The roadmap charts an ambitious growth trajectory while addressing environmental and infrastructure challenges that have historically constrained sector development.

A cornerstone of the policy involves substantial investment in slurry pipeline infrastructure, with the government proposing viability gap funding to support these capital-intensive projects. These pipelines are expected to improve ore transportation efficiency and reduce logistics costs, facilitating the sector's geographic expansion across India's mineral-rich regions.

Environmental sustainability forms another pillar of the draft framework. The policy targets a 39 per cent reduction in emission intensity across steel production, positioning India to meet increasingly stringent global climate standards. This reduction will require adoption of advanced technologies and cleaner production methods across existing and new facilities.

The strategy also emphasizes export competitiveness and resource efficiency. India aims to increase steel exports to 45 million tonnes while expanding the use of scrap-based production methods. Increased scrap utilization aligns with circular economy principles and reduces reliance on virgin ore, addressing both sustainability concerns and raw material constraints.

The draft policy represents a comprehensive approach to balancing India's growth aspirations in steel production with environmental responsibility and resource optimization, positioning the sector to meet domestic demand while strengthening its global market position.