new delhi a new policy that aims to achieve steel making capacity of 300 million tonnes by 2030 with an additional investment of rs 10 lakh crore got the cabinet green light on wednesdaythe cabinet also approved a policy for the use of domestic steel products in government organisationsthe union cabinet chaired by prime minister narendra modi has given its approval to the national steel policy nsp 2017 the steel ministry said in a statementthe cabinet has approved the policy for providing preference to domestically manufactured iron and steel products on government procurement the ministry said in another statementthe policy makes it mandatory to give preference to domestically manufactured iron and steel products dmisp in government procurement the policy is applicable to all government tenders where price bid is yet to be openedthe dmisp policy provides a minimum value addition of 15 per cent in notified steel products which are covered under preferential procurement in order to provide flexibility the ministry of steel may review specified steel products and the minimum value addition criterion it saidthe nsp enshrines a longterm vision to give impetus to the steel sector it seeks to boost domestic steel consumption and ensure high quality steel production and create a technologicallyadvanced and globally competitive steel industrythe policy projects crude steel capacity of 300 mt production of 255 mt and robust finished steel per capita consumption of 158 kg by 203031 as against the current use of 61kgthe policy also envisages domestically meeting the entire demand of highgrade automotive steel electrical steel special steels and alloys for strategic applications and increasing domestic availability of washed coking coal so as to reduce import dependence on coking coal from about 85 per cent to around 65 per cent by 203031 the statement saidsteel minister chaudhary birender singh is confident that the policy will give a concrete shape to future plans and policies for the steel industry in indiawe have taken a holistic and comprehensive view of the steel sector in india and its key growth drivers to ensure sustainable growth of all segments of the industry he saidthrust areas in the policy include raw material securitisation import substitution increasing production efficiency and enhancing steel consumption he saidi am confident that the policy will make the indian steel sector more vibrant and competitive and facilitate taking the steel industry to new heights of success the minister addedthe potential of the msme steel sector has been recognised too as per the policy adoption of energy efficient technologies in the msme steel sector will be encouraged to improve overall productivity and reduce energy intensitythe ministry will also ensure availability of raw materials like iron ore coking coal and noncoking coal natural gas etc at competitive ratesthe policy envisages development of globally competitive steel manufacturing capabilities costefficient production facilitating foreign investment and asset acquisitions of raw materialsrd in the sector will take spotlight through the establishment of the steel research and technology mission of india srtmi the initiative is aimed at spearheading rd