Nifty Metal Rises As Draft National Steel Policy Vision 2047 targets 604 million tonnes of steel capacity

The government has released the draft National Steel Policy Vision 2047 for public and stakeholder consultation, targeting 604 million tonnes of crude steel capacity by 2047. Steel companies led gains in the Nifty Metal index on October 12 after the draft was released, with the policy still at the consultation stage.

The draft sets 604 million tonnes of capacity for 2047

The draft National Steel Policy Vision 2047 puts finished steel demand at 505 million tonnes by 2047. It sets the per capita consumption target at 302 kg and the export target at 45 million tonnes for that year, according to the Government of India document.

The policy document projects iron ore demand of 772 million tonnes and coking coal demand of 236 million tonnes by 2047. It also covers the secondary steel sector, which comprises around 2,550 units and nearly 47% of crude steel production capacity.

For that sector, the draft proposes support for raw-material access, technology improvement, skill development and safety, the Government of India document says.

Nifty Metal rises 0.4% as steel companies lead gainers

The Nifty Metal index rose 0.4% by 11:10 am IST on October 12, marking its second consecutive session of gains, according to Nifty Metal index data. Shares of metal producers and miners rose during the session, with steel companies among the gainers after the draft policy was released.

Tata Steel and JSW Steel traded around 1.4% higher on October 12 after rising as much as 2.5% in early trading, according to the market data reported in the source material.

Raw materials account for 65–70% of steelmaking costs

Raw materials account for around 65–70% of steelmaking costs, the draft National Steel Policy Vision 2047 states. India imports nearly 92% of its coking coal requirement, according to the document.

The government proposes to secure supplies through domestic mining, washery expansion, overseas asset acquisition, long-term supply arrangements and strategic global outreach. The draft also identifies manganese and limestone as raw materials requiring attention.

The policy sets average steel-sector carbon-emission intensity at around 1.54 tonnes of carbon dioxide per tonne of crude steel by 2047, compared with 2.54 tonnes in the baseline cited in the document. It outlines a phased transition towards net zero by 2070 through energy efficiency, renewable electricity, greater scrap use and hydrogen.

The 2017 policy set a 300-million-tonne capacity target for 2030

The National Steel Policy 2017 targeted 300 million tonnes of steel capacity, per capita consumption of 160 kg and raw-material availability by 2030. The draft National Steel Policy Vision 2047 replaces that capacity target with its 604-million-tonne target for 2047.

Manufacturing and infrastructure will remain the primary drivers of steel demand, the new draft says. Construction and infrastructure account for about 67% of steel consumption, while automobiles, engineering goods, appliances and packaging contribute another 28%.

India's crude steel production rose from about 89 million tonnes in 2014-15 to 170 million tonnes in 2025-26, while finished steel consumption increased from 77 million tonnes to 164 million tonnes over the same period, according to the draft.

Per capita steel consumption was 116 kg in FY26, compared with a global average of 209 kg, the document says.

The 2047 policy remains under public and stakeholder consultation

The National Steel Policy Vision 2047 remains a draft document released by the Government of India for public and stakeholder consultation. The consultation process therefore remains outstanding.

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