New stainless steel policy to target 5X jump in capacity
NEW DELHI : The Union steel ministry has started industry consultations to frame India’s first stainless steel policy, an official aware of the matter said. The policy will aim to raise domestic capacity by nearly fivefold by 2047, from the current 6.6 million tonnes (mt) to 30 mt. A key objective of the policy is to reduce dependence on China for nickel, silicon and chromium, which are used to make stainless steel.
“We are totally dependent on a single country (China) for many of these raw materials required to manufacture stainless steel. The policy would look at ways to diversify its sourcing," the official cited above said on condition of anonymity. In March, Jindal Stainless Ltd acquired a 49% stake in an Indonesian nickel smelter for about ₹1,300 crore to secure supplies.
Sourcing such inputs from countries other than China and finding them within India are among the options being considered, the official cited above added. Indonesia is one of the largest nickel producers in the world. Separately, the mines ministry is focusing on scouting for 30 minerals, including 17 rare earth elements and six platinum-group elements, given their economic importance and limited availability.
Some of the minerals needed by the steel industry also figure in this list. The policy is being formulated at the request of the stainless steel industry, which says its concerns are often left out since they differ from those of the carbon steel sector. “It (the policy on stainless steel) is encouraging and a step in the right direction for the sector since decisions like the export duty on steel and removal of countervailing duty have benefited the carbon steel sector but adversely impacted the stainless steel sector.
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