India plans major steel capacity expansion by 2047

India is targeting steel capacity of 604 million metric tons by 2047, up from around 220 million tons at present, under a draft policy released for public consultation late on Saturday.

The proposed policy sets out plans to reduce emissions from the steel sector and secure supplies of iron ore and coking coal to meet anticipated demand.

Reuters reported last week, citing the draft document, that the policy outlines measures to address emissions and strengthen access to these key raw materials.

The draft aims to bring the sector’s average carbon-emission intensity down to around 1.54 tons of carbon dioxide per ton of crude steel by 2047, from the current 2.54 tons. The target is in line with India’s goal of achieving net zero emissions by 2070.

The steel ministry expects iron ore demand to reach 772 million tons. The document said the ministry plans to secure access to high-grade reserves by pursuing foreign assets and joint ventures.

Coking coal demand is expected to rise to 236 million tons, according to the draft. The government plans to diversify its sources through “strategic global outreach” and acquire overseas assets.