India’s cabinet has approved a new policy stipulating the use of domestically-produced steel for government construction projects. The policy applies to all government tenders where bidding is yet to be opened.

The measures provides a minimum value addition of 15% in notified steel products which are covered under preferential procurement, according to the cabinet.

“While implementing who shall provide the policy, it poses trust on each domestic manufacturer who shall provide self-certification to the procuring government agency declaring that the iron and steel products are domestically manufactured in terms of the domestic value addition prescribed,” India’s cabinet says.

“It shall not normally be the responsibility of the procuring agency to verify the correctness of the claim,” it continues. “In few cases, the onus of demonstrating the correctness-of the same shall be on the bidder when asked to do so.”

The measure was initially touted in March (see Kallanish 8 March).

The policy allows for steel to be procured from non-domestic sources in the event that specific steel grades or required tonnages are not available domestically.

Besides promoting domestic steel industry development, the measure is designed to “…reduce the inclination to use, low quality, low cost imported steel in government funded projects,” the cabinet says.

The cabinet simultaneously approved the National Steel Policy 2017. This policy seeks to raise domestic steel consumption and ensure India’s steel industry is technologically advanced and globally competitive, according to India’s steel ministry.

The policy projects crude steel capacity of 300 million tonnes/year and production of 255m t/y by 2030-31, as well as finished per capita steel consumption of 158kg versus the current 61kg (see Kallanish 12 January).