Synopsis: The Steel Ministry extends the Domestically Manufactured Iron & Steel Products policy for six months, favoring locally made steel. The policy gives preference to steel products with 15%-50% value addition in procurement tenders by public sector undertakings, aiming to boost domestic manufacturing.
Article:
The Steel Ministry, on March 5, has prolonged the Domestically Manufactured Iron & Steel Products (DMI&SP) policy, emphasizing the prioritization of locally manufactured steel products. This extension comes beyond the previous deadline of May 29, 2024, ensuring continuity in promoting indigenous steel production.
Under the DMI&SP policy, the government grants preference to iron and steel products manufactured within the country in procurement tenders floated by public sector undertakings. This initiative aims to strengthen domestic manufacturing capabilities and reduce dependence on imported steel.
The policy stipulates that preference will be given to products demonstrating 15%-50% value addition in procurement orders. This emphasis on value addition incentivizes local steel producers to enhance their manufacturing processes and contribute to economic growth.
Applicable to procurement orders with an aggregated estimate value of $68,000 or higher, the policy plays a crucial role in supporting local steel manufacturers and fostering a conducive environment for the domestic steel industry.
Furthermore, the policy includes provisions for waivers in cases where specific grades of steel are not produced domestically or when quantities required for a project exceed domestic supply capacities. This flexibility ensures that projects are not hindered by supply constraints while maintaining a focus on supporting domestic steel production.
The extension of the DMI&SP policy reflects the government's commitment to promoting self-reliance and boosting the domestic steel sector's competitiveness. By continuing to prioritize locally manufactured steel products, the government aims to stimulate economic growth and create a more resilient steel industry.
Conclusion:
The Steel Ministry's decision to extend the DMI&SP policy underscores the importance of supporting indigenous steel production and fostering a conducive environment for domestic manufacturers. By prioritizing locally made steel products in procurement tenders, the government aims to enhance self-reliance, stimulate economic growth, and strengthen the competitiveness of the domestic steel industry.
Source: STEELGURU
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