India targets 604 million tons of steel capacity by 2047, eyes lower emissions

India plans to significantly increase its steelmaking capacity to meet future demand for infrastructure and manufacturing (Reuters)

NEW DELHI: India has set an ambitious target to nearly triple its steelmaking capacity to 604 million metric tons by 2047 from around 220 million tons at present, while planning to reduce carbon emissions and secure long-term supplies of key raw materials, according to a draft steel policy released for public consultation.Reuters reported last week, citing the draft document, that the proposed policy outlines measures to cut emissions from steel production and strengthen access to iron ore and coking coal as India prepares for rising demand. The draft was released for public consultation late on Saturday.Under the proposed policy, India aims to reduce the steel sector's average carbon-emission intensity to around 1.54 tons of carbon dioxide per ton of crude steel by 2047, down from the current 2.54 tons.The reduction of nearly 39 per cent is intended to support India's broader commitment to achieving net-zero emissions by 2070.Meeting the capacity target will also require a substantial increase in raw-material supplies. The steel ministry projects iron ore demand at 772 million tons and plans to secure access to high-grade reserves through overseas investments and joint ventures, according to the draft.Coking coal demand is expected to reach 236 million tons, the document said.

To reduce supply risks, the government plans to diversify sourcing through what it describes as "strategic global outreach" and the acquisition of overseas assets.The proposed expansion comes as India seeks to strengthen its industrial base and meet the steel requirements of infrastructure development, construction and manufacturing.However, increasing capacity while lowering emissions presents a significant challenge for an industry that relies heavily on coal-based production.The policy's success will depend on investment in new steelmaking facilities, access to reliable raw materials and the adoption of cleaner production technologies. The 604-million-ton capacity target remains part of a draft policy and may be subject to changes following public consultation.