High Input Costs and Coking Coal Dependence Threaten Competitiveness, Say Steelmakers

The Minister of State for Steel Bhupathi Raju Srinivasa Varma today urged the industry to sharpen its focus on decarbonisation, technology adoption and raw material security as India pushes towards a 300 mn tonne steelmaking capacity by 2030.

Addressing the Indian Steel Association’s (ISA) annual conclave, the MoS said the sector, which contributes nearly 2% to GDP, has been buoyed by infrastructure spending and flagship schemes such as Make in India and Atmanirbhar Bharat.

“Over the last three years, steel demand has been growing at a double-digit rate and this momentum will continue. But to stay globally competitive, we must advance green steel, embrace new technology and secure raw materials,” he said.

Naveen Jindal, chairman of Jindal Steel, underlined both achievements and constraints. “In FY24-25, India produced more than 151 MT of steel, with current capacity at 200 MT. We are on track for 300 MT by 2030, he stated.

"Yet we face challenges—our dependence on imported coking coal, high logistics costs and the need to improve competitiveness,” Jindal added. He also stressed that the ISA members are equally committed to supporting MSMEs, ensuring their role in manufacturing and exports.

D B Sundara Ramam, vice president of Corporate Services at Tata Steel, highlighted the growing role of green steel, though demand is still below 5%. “By 2050, nearly 80 MT of green steel will be required in India, driven by urbanisation, sustainable construction, and eco-friendly automotive manufacturing,” he said, urging incentives to offset the high cost of producing eco-friendly steel.

He also called for reforms in mining auctions and taxation to ease raw material bottlenecks.

He also noted that while India is one of the few economies where steel demand is growing at 8–10% annually. However, he added, rising imports and declining exports pose risks and careful policy action is need of the hour to safeguard the domestic industry.

Dilip Oommen, CEO at AM/NS India pressed for lower input costs to expand affordability and demand. “If we can reduce levies on iron ore, energy and duties, steel prices will come down, inflation will ease and consumption will rise,” he said, adding that India must turn promises of green steel into real output.

He also noted that sustainability comes at a cost. "For years, many of us have spoken about green steel, but now we must act. To make this viable, we need cost reductions and targeted incentives," he emphasised.