Govt committed to promoting sustainable practices, tech advancements, says steel minister
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Key attendees included H D Kumaraswamy, the Union Minister for Steel and Heavy Industries; Bhupathiraju Srinivasa Varma, the Minister of State for Steel; and Sandeep Poundrik, the Secretary in the Ministry of Steel. The conference also featured Yogesh Mandhani, President of AIIFA, and Kamal Aggarwal, AIIFA Secretary General . Key issues discussed at the conference included innovative practices and technologies aimed at reducing the environmental impact of steel production.
IF-EAF mills crucial for building sustainable, resilient steel industry
Induction furnaces (IFs) and electric arc furnaces (EAFs) are crucial to India's steel production, contributing around 57% of the total output. In FY'24, India's overall steel production reached 143-144 million tonnes (mnt), meaning that steel production via IF-EAF accounted for approximately 81-82 mnt. The increasing contribution underscores the importance of these technologies in fulfilling the country's steel demand while promoting more sustainable practices in the industry.
Govt committed to transition to low-carbon technologies
Steel minister H.D. Kumaraswamy, while speaking at the conference, emphasised the government's commitment to supporting the steel industry, particularly in promoting sustainable practices and technological advancements. He assured that the ministry would work closely with industry stakeholders to create a conducive environment for growth, address challenges, and facilitate the transition to low-carbon technologies. The government aims to enhance the industry's resilience and competitiveness while aligning it with national goals for sustainability and innovation. 
Key takeaways
AIIFA's Steelex reinforced the commitment to a greener future for the steel sector, highlighting that sustainable practices are not just beneficial for the environment but also essential for the industry's competitiveness and long-term growth. Other discussion points from the event are as follows:
- Policy support essential to carving out roadmap for India's steel industry
Government support will be essential for establishing a clear and strategic blueprint for the future of the Indian steel industry. Additionally, seamless collaboration between stakeholders will help create a unified vision for the industry's development. To facilitate growth and sustainability, regulatory frameworks also need to encourage innovation and investment.
- Future of steel manufacturing lies in adopting cutting-edge tech
To be future-ready, the steel industry must identify core technological gaps and modernisation needs. Production capacities need to be upscaled and manufacturing facilities upgraded to incorporate the latest technologies. This includes the adoption of automation, digitalisation, and eco-friendly production methods to enhance efficiency and reduce environmental impact. Recent advancements in quality control, energy efficiency, and waste reduction techniques have elevated the overall standards of production in the industry.
- Industry exploring novel funding avenues to overcome growth hurdles
Amid the current steel landscape, challenges such as high operating costs and lack of access to capital have led to financial constraints for several steel producers. Government incentives, international funding, and private investments should be leveraged to promote growth and innovation.
- High barriers to market entry impact growth of finished longs sector
Stringent quality standards, tedious approval processes, and logistical inefficiencies pose barriers to market entry in the finished longs segment. These challenges need to be eliminated to enhance competitiveness in both the domestic and international markets.
- Low-carbon transition of secondary steel sector remains imperative
Practical strategies and innovations need to be adopted to significantly reduce carbon emissions within the secondary steel sector. Given the urgency of addressing climate change, the industry should explore various alternative approaches to facilitate a more sustainable and eco-friendly steel production process.
- Resilient supply chains to elevate input material security
Recent global disruptions such as geopolitical tensions and climate change have highlighted the critical need for resilient supply chains in the steel industry. Various strategies are being developed to secure consistent and reliable supply of raw materials essential for steel production.
- GST challenges, power tariff flux emerge as key financial constraints
Challenges arising from the implementation of the goods and services tax (GST) and fluctuating power tariffs have adversely affected overall profitability. While policy reforms are required to alleviate these burdens, companies also need to come up with innovative strategies to manage these costs effectively.