India’s cabinet of ministers has approved mandatory use of domestic steel in government projects but has incorporated specific exemptions for imports too, a senior government official said on Thursday, May 4.
The official said that the government has approved the National Steel Policy which provides that government tenders for all projects will give preference to domestic steel suppliers and this will ensure higher capacity utilizations of Indian steel mills.
However, Indian steel mills will be permitted to use imported intermediate steel products subject to the provision that the mills add a minimum of 15 percent value addition to the finished products offered to government projects.
The mandatory use of domestic steel will also not be applicable in the case of grades of steel not produced by Indian steel mills, the official said, citing the example of cold rolled grain-oriented (CRGO) steel.