India Targets 604 MT Steel Capacity by 2047
India's draft National Steel Policy – Vision 2047 aims for a massive expansion in steel capacity while slashing coking coal import dependence.
India is preparing for a massive industrial transformation, aiming to nearly triple its crude steelmaking capacity to 604 million tonnes (MT) by 2047. According to the draft National Steel Policy – Vision 2047, the nation is setting its sights on meeting a projected finished steel demand of 505 MT while simultaneously tackling the heavy reliance on imported coking coal.
A Massive Leap in Production and Consumption
The draft policy outlines an ambitious roadmap to keep pace with India's rapid development. Currently, per capita steel consumption stands at 116 kg, but the vision projects this figure will soar to 302 kg by 2047. This growth is expected to be fueled by massive urbanization, infrastructure expansion, renewable energy projects, and emerging manufacturing sectors.
The industry has already shown significant momentum. Crude steel production has climbed from 89 MT in 2014-15 to an estimated 170 MT in 2025-26. Meanwhile, finished steel consumption has seen a similar rise, moving from 77 MT to 164 MT. The current installed steelmaking capacity is approximately 220 million tonnes per annum (MTPA).
Driving Sectors for Steel Demand
The demand for steel is largely dictated by key domestic industries:
- Infrastructure and Construction: Accounting for roughly 67 per cent of domestic consumption.
- Automobiles, Engineering, and Appliances: Contributing another 28 per cent.
- Packaging and Emerging Manufacturing: Supporting the remaining demand.
Breaking the Import Dependence on Coking Coal
One of the most critical hurdles identified in the policy is raw material security. Since raw materials constitute between 65-70 per cent of total steelmaking costs, any volatility in supply impacts the entire sector. Currently, India imports nearly 92 per cent of its coking coal requirements.
To mitigate this vulnerability, the Vision 2047 framework proposes a multi-pronged strategy:
- Expanding domestic mining operations.
- Increasing the number of coal washeries.
- Diversifying overseas sourcing to reduce reliance on specific regions.
- Improving coal-blending practices to optimize usage.
The Green Steel Revolution
As the industry scales up, the draft policy places a heavy emphasis on decarbonization. The goal is to significantly lower the average emissions intensity from 2.54 tonnes of carbon dioxide per tonne of crude steel to 1.54 tonnes by 2047.
To achieve these "green steel" targets, the policy suggests several technological shifts, including:
- Increased use of renewable electricity in production.
- Higher integration of scrap steel through improved collection and recycling systems.
- Adoption of hydrogen-based steelmaking technologies.
- Enhanced energy efficiency across all plants.
Technology and Specialty Steel
The roadmap also looks toward high-value manufacturing. The government intends to strengthen domestic capabilities in specialty and high-value steel while promoting the indigenous manufacturing of steelmaking equipment and technology.
To drive productivity and resource efficiency, the policy identifies Artificial Intelligence (AI), automation, and advanced digital technologies as essential tools for the modern steelmaker. Realizing this vision will require a coordinated effort between the Centre, state governments, and industry stakeholders to transform India into a global steel powerhouse.