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Backbone of Indian Infrastructure

The Ministry of steel is responsible for planning and development of Iron and Steel industry, development of essential inputs such as iron-ore, limestone, dolomite, manganese ore, chromites, ferro-alloys, sponge iron, etc. and other related functions. The Ministry of Steel is presently headed by a Cabinet Minister who is assisted by a Minister of State.

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Specialty Steel

(Production Linked Incentive)

The Ministry of Steel, Government of India, is actively promoting the development of specialty steel through several strategic initiatives. A cornerstone of this effort is the Production Linked Incentive (PLI) Scheme for Specialty Steel launched on July 29, 2021. The scheme focuses on boosting domestic production of specialty steel grades, which are high-value and have applications in various sectors like defense, automobiles, and electrical appliances. This reduces reliance on imports and promotes "Atmanirbhar Bharat" (self-reliant India).

In its first phase, the scheme attracted 44 projects from 26 companies, with a committed investment of approximately ₹27,106 crore and the creation of 24 million tonnes of downstream capacity. The Ministry of Steel recently launched the second phase of the scheme, termed as PLI Scheme 1.1, on January 6, 2025, which includes relaxed norms (e.g., lower investment thresholds), carry-forward provision for excess production..

Green Steel Initiative

Decarbonizing the steel industry is a global challenge due to its energy-intensive processes and carbon-heavy inputs. India is focusing towards sustainability and climate change. In alignment with the announcement made by Hon’ble PM in COP26 Summit to reduce carbon intensity of India’s economy by more than 45% by 2030 and achieve net-zero by 2070, Ministry of Steel has initiated a journey towards producing low-carbon steel in a sustainable manner, implementing streamlined efforts and strategies to facilitate the sector's transition. These initiatives aim to decarbonize the steel industry by leveraging multiple technological and process-oriented solutions.

Towards this, Ministry has published a comprehensive report titled “Greening the Steel Sector in India: Roadmap and Action Plan” outlining the strategies for green transition of the steel sector. Recently, Green Steel Taxonomy for India has been notified as a foundational tool for the development of green steel market, driving investments in green technologies and thus enhancing India's role in the global industrial decarbonisation landscape

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Green Fuel Initiative

Green hydrogen offers an avenue for fossil-free steelmaking. At present, the available technology for hydrogen-based production of green steel is not commercially viable in the country. Hence, the Government is supporting pilot projects for the use of Green Hydrogen in the steel sector.

Ministry of Steel has awarded two pilot projects to produce DRI using 100% Hydrogen in a vertical shaft and one pilot project to use hydrogen in an existing Blast Furnace to reduce coal/coke consumption under the National Green Hydrogen Mission launched by the Ministry of New and Renewable Energy (MNRE). Various initiatives are also being undertaken by the Private Sector. Renewable energy sources like solar and wind are key to producing green hydrogen, making the shift to sustainable practices more feasible for the steel industry. The adoption of renewable energy in green hydrogen production is expected to accelerate the transition to a low-carbon economy.

Research & Development

Ministry of Steel is providing financial assistance through a Government funded scheme: “Promotion of Research and Development in the steel sector” for pursuing R&D to address the technological issues faced by the sector and also indigenous development of processes/ technologies.

The thrust areas for providing financial assistance under the R&D Scheme, are development of new alternate processes & technologies to address the challenging issues faced by the Iron & Steel Sector such as climate change (green steel production, H2 based steel production, CCUS etc.), waste utilization, resource efficiency, etc.

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Modernization of Steel Plants

India has been focusing on modernizing its steel industry through initiatives led by the Ministry of Steel, aiming to improve productivity, sustainability, and technological advancements. In accordance with the target of 300 MTPA steel production capacity of National Steel Policy (NSP) 2017 modernization & expansion plans are afoot to enhance the capacity of crude steel production.