The draft National Steel Policy has pegged the country's steel making capacity in the range of 244-281 million tonne by 2025-26.
The policy seeks to replace the existing one that was formulated in 2005, and suggest ways to create an environment conducive for the growth of the industry that is plagued by issues such as land acquisition and raw material scarcity.
"The draft Policy has two projections for country's steel capacity. Assuming 7% growth in GDP, it has pegged crude steel capacity production going up to 244 MT and to 281 MT, based on an average economic growth of 8%," a source in the committee drafting the new Policy said.
The policy, being finalised by a committee headed by Steel Secretary, also projects the country's steel demand at 202 MT (at 7% GDP growth) and at 233 MT (at 8% GDP growth) by 2025-26, he said.
A new National Steel Policy is warranted as the existing one lost its relevance with the industry's changing dynamics.
The National Steel Policy, 2005, had pegged country's steel production capacity at 110 MT only by 2020.
But, the reality is that with the ongoing capacity additions by almost all the existing firms (both in the public and private sectors), India's production capacity is set to go past that projection in the current fiscal itself.
India's production capacity in 2011-12 was around 90 million tonne.
"The new National Steel Policy will address a number of issues which were not addressed fully in the existing Policy of 2005 and which have a bearing on the development of steel industry in the country in the medium and long term," he said.
It will aim to help increase capital inflow, overcome hurdles regarding land acquisition, assuage concerns about raw material security, spur efficient utilisation of raw material resources and infrastructure development for the sector among others, officials said.
Steel projects, including those planned by ArcelorMittal, Posco and many others, worth around Rs 3 lakh crore could not take off because of various issues like land acquisition, delay in environmental clearances, among others.
Steel ministry had directed the committee to take into account the dynamic shift of the industry over past few years and formulate a new set of projections, policy guidelines and the action plans not only to meet the domestic needs but also to supply value-added quality steel in international market.
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