New Delhi, May 3 (PTI) The Cabinet today approved a policy for providing preference to domestically manufactured iron and steel products in procurement by the government and its agencies.
The development assumes significance as it is likely to raise domestic steel consumption, as the country’s per capita steel usage at 61 kg is much lower than the global average of 208 kg.
“The Cabinet today approved a policy for providing preference to domestically manufactured iron and steel products in procurements by the government and its agencies,” a source privy to the development said.
The policy aims at giving priority to domestically produced steel and value addition done in India, the source said.
The government had earlier said it was mulling making domestic steel use binding for government projects.
“Talks are going on with the ministries concerned for introduction of policy to make it mandatory to use India-made steel for all infrastructure and construction projects of the government,” Steel Minister Chaudhary Birender Singh had earlier said.
The country’s steel production and consumption are likely to be higher in 2017-18, backed by an increase in infrastructure allocation in the Budget, a report had earlier said.
This is published unedited from the PTI feed.