The National Steel Policy 2005, which
aims to make India a global steel
producer, envisages steel production
to reach 110 million tonnes by 2019-20.
However, based on the assessment of
ongoing steel projects, both greenfield
and brownfield, the working group on
steel for the 12th Plan has projected
India's crude steel capacity at 140 million
tonnes by 2016-17 with a potential to
reach 149 million tonnes if all requirements
are adequately met.
The steel policy is currently being
reviewed in view of the rapid developments
in the domestic steel industry, both
on supply and demand sides, as well as
the stable growth of the economy since
the release of the policy in 2005.
Looking back, the deregulation of the
Indian steel industry was initiated in
1992 as part of economic reforms. The
new policy regime consisted of measures
such as decontrol of steel prices and distribution,
delicensing and dereservation
of capacity, and liberalisation of foreign
trade. The steel industry's future
prospects are now largely determined by
market forces and the role of the government
has changed from a regulator to
that of facilitator and coordinator.
As a result of these policy measures,
steel industry has emerged much
stronger, facing forces of competition in
the past 20 years—becoming the 4th
largest producer of steel in the World.