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Iron, Steel and Scrap and Slag

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Iron, Steel and Scrap and Slag Indian Minerals Yearbook 2019 (Part- II : Metals & Alloys) 58th Edition IRON, STEEL & SCRAP AND SLAG (ADVANCE RELEASE) GOVERNMENT OF INDIA MINISTRY OF MINES INDIAN BUREAU OF MINES Indira Bhavan, Civil Lines, NAGPUR – 440 001 PHONE/FAX NO. (0712) 2565471 PBX : (0712) 2562649, 2560544, 2560648 E-MAIL : [email protected] Website: www.ibm.gov.in December, 2020 IRON, STEEL & SCRAP AND SLAG 9 Iron, Steel & Scrap and Slag ron & steel is decidedly the vital component of a Visveswaraya Iron & Steel Ltd and a few electric arc Icountry's economy and is considered pivotal furnace-based plants. In the period till 1947, the viable amongst the driving forces of modernisation. The steel producers in the country that operated with a level of per capita consumption of steel is treated as capacity of about 1 million tonne was wholly under one of the important indicators of the Private Sector. The provisions of the economic socio-economic development and living policy implemented during the different phase of standards in any country. Steel continues to time engendered several marked changes in Indian be the foremost of engineering materials, which is Steel Industry. From the fledgling one million tonne not only environment-friendly but also is recyclable. capacity status at the time of independence, India nd The total finished steel (alloy/stainless+non- has now risen to be the 2 largest crude steel alloy) production in India has grown from a mere 1.1 producer in the world and the largest producer of million tonnes in 1951 to 101.287 million tonnes Sponge Iron. From a negligible global presence, the (measured in terms of crude steel equivalent) in 2018- Indian Steel Industry is now globally acknowledged 19. The contribution of non-alloy, alloy and stainless for its product quality. steel segment is 94.844 million tonnes, 3.538 million The rapid pace of growth of the Industry and tonnes and 2.905 million tonnes respectively.The the observed market trends called for certain growth in the Steel Sector in the early decades after guidelines and framework. Thus,was born the independence was mainly in the Public Sector units. concept of the National Steel Policy, with the aim to However, following the adoption of new economic provide a roadmap of growth and development for policy and subsequent deregulation and decontrol the Indian Steel Industry. The National Steel Policy of Indian Iron & Steel Sector, the 1990s witnessed (NSP), 2005 was announced in November 2005 as a accelerated growth in the Private Sector, catapulting basic blueprint for the growth of a self-reliant and its share of finished steel production from 45% in globally competitive steel sector. The long-term 1992-93 to 83 % in 2018-19. objective of the National Steel Policy 2005 was to ensure that India has a modern and efficient steel Steel exports from India began in 1964. Exports industry of world standards, catering to diversified in the first five years were mainly as a result of low steel demand. The focus of the policy was to attain demand in the domestic Iron and Steel market. levels of global competitiveness in terms of global Exports subsequently declined due to revival of benchmarks of efficiency and productivity. Then, domestic demand. India once again started after a detailed review in 2017, the Government exporting steel in 1975 which subsequently released the National Steel Policy 2017, which laid registered a slump due to rising domestic demand. down the broad roadmap for encouraging long-term Post liberalisation, a rejuvenation in the Steel Sector growth for the Indian Steel Industry, both on demand resulted in large-scale exports of iron and steel. In and supply sides, by 2030-31, with a vision to create 2018-19, India's total finished steel (alloy/stainless+ a technologically advanced and globally competitive non-alloy) exports & imports were at 6.36 & 7.83 steel industry that which would promote economic million tonnes, respectively. Though the country's growth. At the same time, as a facilitator in the production of iron & steel is sufficient to meet the present-day de-regulated, liberalised economic/ domestic demand, it imports mainly finished/semi- market scenario, the Government also announced a finished steel and iron & steel (scrap) to meet policy for providing preference to domestically specific requirements and supply of essential grades. manufactured Iron & Steel products in Government Liberalisation of the Indian Steel Sector procurement. This policy seeks to accomplish At the time of independence in 1947, India had Hon’ble Prime Minister’s vision of ‘Make in India’ only three steel plants – the Tata Iron & Steel with the objective of nation building and to encourage Company, the Indian Iron & Steel Company and domestic manufacturing. 9-2 IRON, STEEL & SCRAP AND SLAG NATIONAL STEEL POLICY to increase per capita steel consumption to the level of 160 kg by 2030. The Government has recently rolled out three national landmark policies 4. Potential of MSME Steel Sector has been (i) National Steel Policy 2017. recognised. Policy stipulates encouragement and adoption of energy-efficient technologies in the (ii) Policy on Preference to Domestically MSME Steel Sector to improve the overall Manufactured Iron & Steel Products. productivity and reduce energy intensity. (iii) Steel Scrap Recycling Policy. (I) National Steel Policy 2017 5. Steel Ministry will facilitate R&D in the Sector through the establishment of Steel Research and NSP 2017 aims to increase focus on expansion Technology Mission of India (SRTMI). The initiative of MSME sector, improve raw material security, is aimed with a purpose of creating on environment enhance R&D activities, reduce import dependency to spearhead R&D of national importance in Iron & and cost of production, and thus develop a Steel Sector utilising tripartite synergy amongst technologically advanced and globally competitive Industry, national R&D laboratories and academic steel industry that which would promote economic institutions. growth eyeing self-sufficiency in production, developing globally economical steel manufacturing 6. Ministry through policy measures will ensure capabilities by facilitating investments and cost availability of raw materials like iron ore, coking coal efficient productions with adequate availability of and non-coking coal, natural gas etc. at competitive raw materials. rates. With focus on R&D through establishment like 7. With the roll out of the National Steel Policy- Steel Research Technology Mission of India 2017, it is envisaged that the Industry will be steered (SRTMI), the technology would be of utmost focus in creating an environment for promoting domestic over the next decade and MSME steel plants would steel and thereby ensuring a scenario where be the key drivers to achieve the additional capacity production meets the anticipated pace of growth in required for the India’s consumption led growth and consumption, through a technologically advanced improvement in the overall productivity and quality. and globally competitive Steel Industry. This will be facilitated by Ministry of Steel, in coordination with Some of the Highlights of the National Steel relevant Ministries, as may be required. Policy 2017 are enumerated below: The principal objectives that the National Steel 1. The Indian Steel Sector has grown rapidly Policy 2017 aims to achieve are the following: over the past few years and presently India has become the world’s 2nd largest producer of crude steel a) Build a globally competitive industry with in January- December 2019, producing 111.245 million a crude steel capacity of 300 million tonnes tonnes (MT) (provisional) crude steel with growth by 2030-31. rate 1.8% over the corresponding period last year b) Increase per Capita Steel Consumption to (CPLY). 160 kg by 2030-31. c) To domestically meet entire demand of high- 2. The New Steel Policy, 2017 aspires to achieve grade automotive steel, electrical steel, 300 million tonnes of steel making capacity by 2030. special steels and alloys for strategic This would translate into additional investment of applications by 2030-31. 10 lakh crore by 2030-31. d) Increase domestic availability of washed 3. The Policy seeks to increase consumption of coking coal so as to reduce import steel and the major segments that are likely to dependence on coking coal to 50% by 2030- influence consumption would be Infrastructure, 31. Automobiles and Housing. New Steel Policy seeks e) To be net exporter of steel by 2025-26. 9-3 IRON, STEEL & SCRAP AND SLAG f) Encourage industry to be a world leader on steel products” is either 50 crore or more. DMI&SP energy and raw material efficient steel has been defined as those iron & steel products, in production by 2030-31, in a safe and which a minimum value addition of 15% has taken sustainable manner. place domestically. g) Develop and implement quality standards The policy is envisaged to promote growth and for domestic steel products. development of domestic Steel Industry and reduce Expected Impact/Outcome of NSP 2017 the inclination to use low-quality and low-cost a) India to be world leader in energy efficiency (unfairly traded) imported steel in Government and sustainability. funded projects. b) Cost-effective and quality steel destination. Impact of the DMI&SP Policy c) Attain global standards in Industrial The policy has been well-appreciated by the Safety & Health. Industry players and some of the major implications d) Substantially reduce the carbon footprint of the policy has been as follows- of the industry. (i) GAIL had to cancel several tenders on e) Domestically meet the entire demand of high procurement of steel pipe in order to comply with grade steel. the DMI&SP Policy. Steps taken by Ministry for Achieving the Targets (ii) ONGC was given waiver for limited time period in NSP 2017 of 1 to 2 years, to float procurement tender for various a) To fulfill policy objectives Ministry of Steel categories of steel pipes, till the time the domestic organised a conclave on “Capital Goods for Steel industry builds its capability through their product Sector: Manufactured in India” on 23rd October, 2018 development programme.
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