Domestically Manufactured Iron & Steel Products (DMI&SP)

The Union Minister for Steel, Shri Chaudhary Birender Singh briefing the media on the issue of the “National Steel Policy 2017”, in New Delhi on May 04, 2017.
  1. In recent past, Indian steel sector had been severely impacted by the onslaught of cheap imports from the steel majors, resulting in imposition of several trade remedial measures by the Government of India.
  2. Over time, the impact of dumping has been contained to a certain extent, however in coming future, India, with its emphasis on manufacturing through its “Make in India” programme and the planned spend in Infrastructure sector, expansion of railway network, national highways, ports, airports and development of domestic shipbuilding industry etc, is expected to create significant demand for steel in the country.
  3. A significant spend is expected on iron and steel products occurring in the Public Sector and Government projects and hence, it is imperative that most, if not all of this planned expenditure is done with indigenous steel.
  4. The policy mandates to provide preference to Domestically Manufactured Iron & Steel Products (DMI&SP), in Government Procurement for its own use and not with a view to Commercial resale or with a view to use in the production of goods for commercial sale.
  5. The policy is applicable to all such projects and procurements, where the aggregated estimated value of the “iron & steel products” is either INR 50 crores or more. The policy shall come into force from the date of its publication in the Gazette of India and shall be in force for a period of ten (10) years thereafter.
  6. DMI&SP is defined as those iron and steel products, in which a minimum value addition of 15% have taken place domestically.
  7. Each Ministry or Department of Government and all agencies/entities under their administrative control will be under the purview of the DMI&SP policy and would have to adhere to the DMI&SP order as notified by the Ministry of Steel from time to time.
  8. The policy shall come into effect from the date of its notification in all tenders where price bids have not been opened.
  1. The policy also has provisions for waivers to all such procurements, where specific grades of steel are not manufactured in the country, or the quantities as per the demand of the project cannot be met through domestic sources.
  2. The draft policy had also been circulated for inter-ministerial review, to which we have received comments from various ministries. All the relevant points have been noted and appropriate changes have been made.
  3. The policy is envisaged to promote growth and development of domestic steel Industry and reduce the inclination to use, low quality low cost imported steel in Government funded projects.



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