India’s first stainless steel policy to boost domestic capacity

The Union Steel Ministry has begun industry consultations for India’s inaugural stainless steel policy, with the aim to increase domestic capacity by nearly fivefold by 2047, from the current 6.6 million tonnes (mt) to 30 mt.

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The Union Steel Ministry has initiated industry consultations to develop India’s inaugural stainless steel policy, as revealed by an official familiar with the matter. The primary objective of this policy is to augment domestic production capacity significantly by 2047, aiming to reach 30 million tonnes (mt), a fivefold increase from the current capacity of 6.6 mt.

A pivotal goal of the policy is to reduce India’s reliance on China for essential raw materials such as nickel, silicon, and chromium, which are vital components in stainless steel manufacturing. The anonymous official stated, “We are currently entirely dependent on a single country (China) for many of these crucial materials used in stainless steel production. The policy will explore strategies to diversify sourcing options.”

In March, Jindal Stainless Ltd. acquired a 49% stake in an Indonesian nickel smelter for approximately ₹1,300 crore, a move taken to secure supplies. The policy is exploring various possibilities, including sourcing these raw materials from countries other than China or seeking potential sources within India. Indonesia, being one of the leading nickel producers globally, is of particular interest.

Additionally, the mines ministry is actively searching for 30 minerals, including 17 rare earth elements and six platinum-group elements, given their economic significance and limited availability. Interestingly, some of these minerals required by the steel industry are also part of the ministry’s exploration list.