India Steel Procurement Policy: Revised Guidelines for 2025

India has recently unveiled the Revised Domestically Manufactured Iron & Steel Products Policy-2025, which aims to bolster the preference for locally produced steel in government procurement contracts.

Key Provisions of the Revised Policy:

1. Objective: The primary goal of the policy is to prioritize the procurement of domestically manufactured iron and steel products in government contracts.

1. It introduces a reciprocal clause to address trade restrictions and ensures that foreign manufacturers comply with similar requirements when exporting steel to India.
2. Additionally, the policy mandates a significant level of domestic value addition for capital goods such as furnaces and rolling mills.

2. Ban on Global Tender Enquiries: The policy introduces a restriction on Global Tender Enquiries for steel procurement contracts with an estimated value up to Rs. 200 Crore.

• This means that, except with the approval of a competent authority, these contracts must only consider domestically produced steel products, preventing foreign suppliers from dominating smaller contracts.

3. Domestic Value Addition Requirement for Capital Goods: For capital goods like furnaces and rolling mills, the policy mandates a minimum of 50% domestic value addition.

• This requirement is designed to promote local manufacturing and technology development, while ensuring that Indian industries contribute to the value chain.