In a significant policy shift aimed at boosting self-reliance in the steel sector, the Indian government has revised its Domestically Manufactured Iron & Steel Policy 2025, introducing a stringent ‘melt and pour’ norm to ensure that only steel produced entirely within India is used in government-funded infrastructure projects.
According to government officials, the revised guideline mandates that only domestically manufactured steel meeting the ‘melt and pour’ condition—which requires the entire crude steel manufacturing process to occur in India using basic raw materials—will be eligible for procurement in public projects.
This move tightens previous rules, which allowed imported steel to qualify as “domestic” through minimum value addition. Under the earlier framework, steel could be imported in semi-finished form, processed locally, and still be used in government tenders.
“The minimum value addition requirement created a loophole for imported steel to enter the system,” said an analyst at Indian rating agency ICRA. “The ‘melt and pour’ condition removes that flexibility and ensures full-scale domestic production.”
Government sources confirmed that the revision is intended to support local industry, curb import dependency, and align with the broader ‘Atmanirbhar Bharat’ (self-reliant India) initiative.
The new policy is expected to have significant implications for foreign suppliers, domestic steelmakers, and project developers involved in public infrastructure contracts.
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