In a move aimed at strengthening India’s iron and steel industry, the Ministry of Steel (MoS) introduced the revised Domestically Manufactured Iron and Steel Products Policy (DMI&SP Policy) on April 1, 2025. This updated policy seeks to prioritize domestically manufactured iron and steel products in government procurement processes, which will bring significant benefits to domestic manufacturers and contribute to the development of the sector. The policy is part of the government’s broader strategy to increase domestic manufacturing capabilities, reduce dependence on imports and promote economic growth.

What is the Revised Domestically Manufactured Iron and Steel Products Policy-2025?

The Domestically Manufactured Iron and Steel Products Policy-2025 is an initiative of the Ministry of Steel to promote the use of domestically produced iron and steel products in government procurement. It is designed to give priority to iron and steel industry products manufactured by companies established and registered in India. This policy applies to all government departments, public sector undertakings (PSUs), societies, trusts and statutory bodies within the administrative control of the government as well as projects funded by these entities.

The policy applies to iron and steel products and capital goods required for the manufacture of iron and steel products. These products must conform to the prescribed quality standards and regulations. However, the policy excludes purchases for commercial resale or the manufacture of goods intended for commercial sale. The goal of the policy is to support domestic manufacturers, reduce dependence on imports and promote self-sufficiency in the iron and steel sector.

Also Read: Decarbonizing India's Steel Industry: A Strategic Roadmap

Table of Contents

What is the Revised Domestically Manufactured Iron and Steel Products Policy-2025?
Key Components of DMI&SP Policy-2025
Appendix - A
Appendix - B
Benefits of DMI&SP Policy-2025
Conclusion

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Key Components of DMI&SP Policy-2025

The DMI&SP Policy-2025 has several key components that define each and everything. Here are the primary elements of the policy:

Background:

The DMI&SP policy encourages preference for domestically manufactured iron and steel products in government procurement.
This includes products listed in Appendix A (Iron and Steel Products) and Appendix B (Capital Items for the Manufacture of Iron and Steel).
The policy applies only to items that comply with the prescribed quality standards.
The policy does not apply to purchases used for commercial resale or the production of goods for commercial sale.

Definitions:

Bidder may be a domestic/ foreign manufacturer of iron & steel or their selling agents/ authorized distributors/authorized dealers/ authorized supply houses or any other company engaged in the bidding of projects funded by Government agencies.
Domestically Manufactured Iron & Steel Products are those iron and steel products that are manufactured by entities that are registered and established in India, including in Special Economic Zones (SEZs).
Domestic Manufacturer is a manufacturer of iron & steel products conforming to guidelines in section 7 and the definition of ‘manufacturer’ as per the Central Excise Act.
Government for the purpose of the Policy means Government of India.
Government agencies include Government PSUs, Societies, Trusts, and Statutory bodies set up by the Government of India.
MoS shall mean Ministry of Steel, Government of India.
Net Selling Price shall be the invoiced price excluding net domestic taxes and duties.
Semi-Finished Steel shall mean Ingots, billets, blooms, and slabs, which can be subsequently processed into finished steel.
Finished Steel shall mean flat and long products, which can be subsequently processed into manufactured items.
L1 means the lowest tender or the lowest bid or the lowest quotation received in a tender, bidding process, or other procurement solicitation as adjudged in the evaluation process as per the tender or other procurement solicitation.
Margin of purchase preference means the maximum extent to which the price quoted by a domestic supplier may be above L1 for the purpose of purchase preference. In the case of DMI&SP policy, the margin of purchase preference shall be for items in Appendix B.
Melt & Pour is defined as the steel that has been produced in a steel-making furnace and poured into its first solid shape. The location where this process takes place is called the country of melt and pour (COM). The COM is the original location where crude steel is first produced in a liquid state and poured into its first solid shape. The first solid shape can be a semi-finished product, like a slab, billet, ingot, or a finished steel mill product.
Domestic value addition means the amount of value added in India which shall be the total value of the item to be procured (excluding net domestic indirect taxes) minus the value of imported content in the item (including all custom duties) as a proportion of the total value of the item to be procured, in percent. The ‘domestic value addition’ definition shall be in line with the DPIIT guidelines and shall be suitably amended in case of any changes by DPIIT in the future. For the purpose of this policy document, domestic value addition and local content have been used interchangeably.

Exclusion:

The Ministry of Steel (MoS) can grant waivers in specific circumstances, such as when certain grades of steel are not available in India or when domestic supply is insufficient to meet the quantities required for a project. In order to request a discount, procurement agencies must provide proof of unavailability of products domestically. This ensures that procurement processes are not hindered by supply constraints while maintaining transparency and accountability in meeting project requirements.

Standing Committee:

A standing committee chaired by the Secretary (Steel) will oversee the implementation of the policy, comprising industry experts, associations and government representatives. Key responsibilities of the Committee include monitoring policy implementation, reviewing and updating the list of iron and steel products, and revising domestic value added norms. It will also issue clarifications on policy implementation, including exemptions, and establish a grievance redressal mechanism to address complaints. The committee will address issues of non-compliance by government agencies and will handle cases where the bidder’s price is deemed to be unreasonably high, and the procuring entity must provide supporting documentation for further review.

Applicability:

Government agencies: The policy applies to all ministries, departments and agencies under government control.
Government-funded projects: This applies to government-funded projects, including Central Sector Schemes (CS) and Centrally Sponsored Schemes (CSS), irrespective of whether the procurement is done by States or local bodies.
Public sector steel manufacturers: Applies to public sector manufacturers to purchase capital goods (Appendix B) used in steel production.
Purchase limit: The policy applies to contracts where the total purchase price exceeds Rs. 5 lakhs for iron and steel products (Appendix A) and applies to projects with an estimated value of up to Rs. 200 crores for capital items (Appendix B).
Global tender restrictions: No Global Tender Examination (GTE) can be called for procurement of iron and steel products under the policy unless approved by the designated authority.

Tender Process for Procurement:

Standard procedures: Procurement agencies should follow standard procurement procedures as per the guidelines of the Ministry of Finance and the Central Vigilance Commission (CVC) while adhering to the DMI&SP policy.
Bid documentation: Tender documents must include qualification criteria for compliance with Appendix A and B requirements.
Self-certification: Domestic manufacturers should self-certify the local content of their products during the bidding process. For Appendix B, a statutory auditor or cost auditor must certify domestic value added.
Authorization for agents: Sales agents, authorized distributors or dealers can bid on behalf of domestic manufacturers, provided they have an authorization certificate.
Foreign supplier restrictions: Foreign suppliers of steel products should not be allowed to participate in Indian government procurement if their country imposes restrictions on Indian companies.

Monitoring and Compliance:

Policy period: The policy remains in effect for five years from its publication, with possible extension at the discretion of MOS.
Quarterly declaration: The policy requires agencies to submit a quarterly declaration on their compliance status, explaining any noncompliance.
Penalties for non-compliance: Procurement agencies should define penalties for misrepresentations about domestic value addition, including the possibility of blacklisting or financial penalties.
Grievance redressal: Complaints about the implementation of the policy will be handled by the Grievance Redressal Committee, which will resolve issues within four weeks of receipt of all documentation.

Also Read: How to Import Steel or Steel Products in India?

Appendix - A

Iron and Steel Products

S. No.	Iron and Steel Products	HS Code	Condition
1	Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, hot rolled, not clad, plated or coated	7208	Melt and Pour
2	Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, cold rolled (cold-reduced), not clad, plated or coated	7209	Melt and Pour
3	Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, clad, plated or coated	7210	Melt and Pour
4	Flat-rolled products of iron or non-alloy steel, of a width of less than 600 mm, not clad, plated or coated	7211	Melt and Pour
5	Flat-rolled products of iron or non-alloy steel, of a width of less than 600 mm, clad, plated or coated	7212	Melt and Pour
6	Bars and rods, hot-rolled, in irregularly wound coils, of iron or non-alloy steel	7213	Melt and Pour
7	Other bars and rods of iron or non-alloy steel, not further worked than forged, hot rolled, hot-drawn or hot-extruded, but including those twisted after rolling	7214	Melt and Pour
8	Other bars and rods of iron or non-alloy steel	7215	Melt and Pour
9	Angles, shapes and sections of iron or non-alloy steel	7216	Melt and Pour
10	Wire of iron or non-alloy steel	7217	Melt and Pour
11	Flat-rolled products of stainless steel, of a width of 600 mm or more	7219	Melt and Pour
12	Flat-rolled products of stainless steel, of a width of less than 600 mm	7220	Melt and Pour
13	Other bars and rods of stainless steel; angles, shapes and sections of stainless steel	7222	Melt and Pour
14	Wire of other alloy steel	7229	Melt and Pour
15	Rails, railway or tramway track construction material of iron or steel	7302	Melt and Pour
16	Tubes, pipes and hollow profiles, of cast iron	7303	Melt and Pour
17	Tubes, pipes and hollow profiles, seamless, of iron (other than cast iron) or steel	7304	Melt and Pour
18	Other tubes and pipes (for example, welded, riveted or similarly closed), having circular cross-sections, the external diameter of which exceeds 406.4 mm, of iron or steel	7305	Melt and Pour
19	Other tubes, pipes and hollow profiles (for example, open seam or welded, riveted or similarly closed), of iron or steel	7306	Melt and Pour
20	Tube or pipe fittings (for example, connectors/couplings, elbow sleeves), of iron or steel	7307	Melt and Pour
21	Bars and rods, hot-rolled, in irregularly wound coils, of stainless steel	7221	Melt and Pour
22	Wire of stainless steel	7223	Melt and Pour
23	Flat-rolled products of other alloy steel, of a width of 600 mm or more, including electrical steel	7225	Melt and Pour
24	Flat-rolled products of other alloy steel, of a width of less than 600 mm, including electrical steel	7226	Melt and Pour
25	Bars and rods, hot-rolled, in irregularly wound coils, of other alloy steel	7227	Melt and Pour
26	Other bars and rods of other alloy steel; angles, shapes and sections, of other alloy steel; hollow drill bars and rods, of alloy or non-alloy steel	7228	Melt and Pour
27	Sheet piling of iron or steel, whether or not drilled, punched or made from assembled elements; welded angles, shapes and sections, of iron or steel	7301	Melt and Pour
28	Structures (excluding prefabricated buildings of heading 9406) and parts of structures	7308	Melt and Pour
29	Reservoirs, tanks, vats and similar containers for any material (other than compressed or liquefied gas), of iron or steel, of a capacity exceeding 300 whether or not lined or heat insulated, but not fitted with mechanical or Thermal equipment	7309	Melt and Pour
30	Tanks, casks, drums, cans, boxes and similar containers, for any material(other than compressed or liquefied gas), of iron or steel, of a capacity not exceeding 300L,whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment	7310	Melt and Pour
31	Containers for compressed or liquefied gas, of iron or steel	7311	Melt and Pour
32	Stranded wire, ropes, cables, plaited bands, slings and the like, of iron or steel, not electrically insulated	7312	Melt and Pour
33	Barbed wire of iron or steel; twisted hoop or single flat wire, barbed or not, and loosely twisted double wire, of a kind used for fencing, of iron or steel	7313	Melt and Pour
34	Grill, netting and fencing, of iron or steel wire; expanded metal of iron or steel	7314	Melt and Pour
35	Chain and parts thereof, of iron or steel	7315	Melt and Pour
36	Anchors, grapnels and parts thereof, of iron or steel	7316	Melt and Pour
37	Articles of iron and steel	7317	Melt and Pour
38	Articles of iron and steel	7318	Melt and Pour
39	Articles of iron and steel	7319	Melt and Pour
40	Springs and leaves for springs, of iron or steel	7320	Melt and Pour
41	Stove, Range, Grate, Cooker (including auxiliary boiler for central heating), barbeques, braziers, gas-rings, plate warmers and similar non-electric household appliances, and parts thereof, of iron or steel	7321	Melt and Pour
42	Radiators for central heating, not electrically heated, and parts thereof, of iron or steel; air heaters and hot air distributors, not electrically heated, incorporating a motor-driven fan or blower, and parts thereof, of iron or steel	7322	Melt and Pour
43	Tables and similar house hold articles and parts thereof, of iron or steel	7323	Melt and Pour
44	Sanitary ware and parts thereof, of iron or steel	7324	Melt and Pour
45	Other cast articles of iron or steel	7325	Melt and Pour
46	Electrical steel and other articles of iron or steel	7326	Melt and Pour
47	Railway or tramway passenger coaches, not self-propelled	8605	Melt and Pour
48	Railway or tramway goods vans and wagons, not self-propelled	8606	Melt and Pour
49	Parts of railway or tramway locomotives or rolling-stock; such as bogies, bissel-bogies, axles and forged wheels, and parts thereof	8607	Melt and Pour

Appendix - B

Indicative list of capital goods (non-exhaustive) for manufacturing iron & steel products

S. No.	Plant Shop	Capital Goods	Domestic value addition requirement
1	Raw material handling system	Apron feeder, barrel couplings, heavy-duty bearings, hydraulic disc brakes, tanker & container for powdered materials, conveyor belt for pipe conveyors, high angle conveyor system, crushers, crane rail lubrication system, four girder EOT Crane, crane weighing system, crane air conditioning, fluid couplings, forklift trucks, hydraulic motors, hydraulic system, locking-assembly (friction grip), load cells, level sensors, pipe conveyor system, plough/paddle feeder, pneumatic transportation – dense & lean phase, reclaimers, radio remote control, rail fixing arrangements(special), rapid/ flood loading system, stackers, special screen, slew ring bearings, tipplers, transfer cars, tongs (special), vibration, isolation system(spring damper),wagon tipplers, wagon loaders	50%
2	Mineral benefaction (iron ore and coal) equipment	Industrial crushers, grinding mills, conventional screens, slurry pumps, hirate thickeners, filters, hydro clones	50%
3	Coke oven	Coke Oven Silica Refractory, Anchorage System, Waste gas valve with branch pipe, Flash Plate, Door Frame, door body, Minor Casting: Gooseneck, Valve box, AP Lid, Charging & inspection hole lid and frame Reversing mechanism, Centralised lubrication system, Hydro jet Door Cleaning Mechanism, Spillage code conveyor system, skip hoist, Door Lowering Rack, Isolation/Reversing Cocks, Level II automation, Oven machines	50%
4	By-product plant	Primary Gas Cooler, Electrostatic Tar Precipitator, H2S, NH3 & Naphthalene Scrubber, Combi Stripper, Flushing Liquor Pump, Claus Kiln, Claus reactors, Waste Heat Boilers, Decanters	50%
5	Sinter Plant equipment	Pallet car, Drive/discharge end Sprocket assembly, Curved rail, Slide rails, Hot sinter breaker and Grizzly, Dip rail & running rail, Impeller assembly for Process fan, Drive assembly of Sinter machine, High-intensity Mixer &Noduliser	50%
6	Pellet plant equipment	Pallet car, Drive/discharge end Sprocket assembly, Curved rail, Slide rails, running rail, Vertical roller mill, Impeller assembly for Process fan, Drive assembly of Indurating machine, Hi-intensity Mixer, Balling disc, Single deck roller screen and Double deck roller screen	50%
7	Blast furnace equipment	Bellles stop system with Bleeder valve, SG Iron stave coolers, Copper stave coolers, Stock level indicator (Radar Type), Mud gun, Drilling machine and Manipulator, Gas Cleaning Plant system, Top Recovery Turbine system including its by-pass valve, De-bricking Machine, Re-railing equipment, PCI system, Grinding mill for PCI, Stock level indicator, Tuyere Stock assembly, Waste Heat Recovery system, BF & Hot Blast Stoves Technological Valves, Above Burden probes, Slag granulation unit, Tuyere&Tuyere cooler, Torpedo Ladle Car, BF hearth refractory	50%
8	Direct reduction plant equipment	Charge distributer, Upper & lower seal leg, Reformer & Re-cuperator system, Burden feeders, Turbo-expander, Process Gas Compressor, Seal gas compressors & bottom seal gas compressors, Seal gas generators &driers,ProcessGasHeater,CO2removal plant	50%
9	Basic oxygen furnace equipment	Main and Maintenance equipment comprising of converter, gunning machine, Refractory/slag monitoring device, converter vessel, trunnion ring and suspension system, trunnion bearings and housing, Converter bull gear unit and tilt drive system, Rotary joint for converter, bottom stirring system, Lance body with clamping, Lance copper tips, Valve stations for oxygen blowing/ bottom stirring, Sub-lance system, Off gas analyzer with process module i.e. Process software/ hardware, container lab Measurement probes, Switch over station, ID fan for primary gas, Hot metal and steel ladle, Ladle Transfer car, Ladle maintenance equipment, Slag pot, Slag pot transfer car, Scrap boxes, Scrap Transfer car, Lance carriage, Lance guide, Crane &hoist, Lance hoist & trolley, Lance tilting device, Traverse for lifting lances, Bunker of various sizes, Bin Vibrator, Weighing Hopper, Maintenance stands, De dusting suction hood, Teeming/HM, ladle relining stands, Stand Cooling stack inspection device, Hood traverse carriage, Refractories, Bypass & isolation valves, Flare stack & ignition system, Scrubbing tower shell - Wet gas cleaning system, Dog house, Ladle drier, ladle pre-heater, ladle cooler, Fume collection hoods, Clean gas stack, Dust silo, Weigh Bridge, Slag retaining device	50%
10	Electric arc furnance	Furnace proper (includes furnace lower shell, upper shell and roof, Tilting platform, Furnace Gantry) and transformer, Electrode regulation system, Hydraulic system, Refractories, Parts of Level I & Level Il Automation system. LF - water cooled ladle roof, electrode mast and arms, electrode regulating system, wire feeding system, Bottom inert gas stirring Valve stand for porous plug and top lance, Emergency lance mechanism, Lance carriage system with drive unit, Automatic temperature, sampling & bath level / O2 measurement, Temp. & oxygen immersion lance, lance carriage system with drive unit, Hydraulic system, Refractories, Ladle roof Delta portion, RH proper (includes Ladle transfer car, vacuum vessel, Vessel lifting & lowering system. Hydraulic system, Multi-Function lance, Valve racks/station, Electrode clamp unit, conductor of electrode arms, water cooled cable, A R stirring valve rack, lance transport car, Refractory lance, Hydraulic cylinder, Ladle roof lifting cylinder, Lubrication system, Suction hood, damper, Vibro feeder, weighing hopper, wire feeding system, Electrode nipiling stand, Cranes, hoist, Temperature & sampling tips, ladle stands, ESP, Deducting hoods, Refractories, bag filter, Cranes etc.	50%
11	Continuous casting equipment	Ladle turret, ladle cover manipulator, Ladle Shroud manipulator, tundish car, Continuous tundish temperature measurement system, Tundish stopper rod mechanism, emergency cut-off gate, mould assembly, Nozzle quick change device, mould oscillator and EMS system, EIectro-Magnetic braking system, Strand guide segment, Withdrawal & Straightening unit (WSU),Roll gap checker, Emergency torch cutter, Torch cutting machine, Deburrer, Marking machine, Technological control system & process models, Black Refractories, strand gunde segment, tundish, ladle cover, roller tables &auxiliaries, mould& segment maintenance equipments, tundish maintenance equipments, EMBR system	50%
12	Flat product mills	Large castings and forgings like mill housing, bed plates, work rolls, backup rolls, end spindles; roller tables, backup roll and work roll chucks, coilers /tension reels / un coilers, AGC cylinders, shears, levellers, lazer welders, packaging machines, non-contact gauges / profile gauges, anti-friction roll neck bearings, oil film bearings, gear boxes, mill motors	50%
13	Long product mills	Mill housing, bed plates, work rolls, backup rolls, spindles; roller tables, coilers/tension reels / uncoilers, shears, billet welder, packaging machines, non-contact gauges / profile gauges, anti-friction roll neck bearings, oil film bearings, finishing blocks, gear boxes, mill motors	50%

Benefits of DMI&SP Policy-2025

The revised policy offers several benefits to the Indian economy and especially the iron and steel sector. Here are the key benefits:

Promoting domestic industry: The policy prioritizes domestically produced iron and steel products in government procurement, promotes local manufacturers and increases production capacity, benefiting the entire steel production ecosystem.
Reduced import dependence: By promoting domestic production, this policy reduces India’s dependence on imported iron and steel, promotes self-reliance and reduces foreign exchange outflows.
Encouragement of quality standards: encourages policy makers to meet stringent quality standards to remain competitive in government procurement, leading to improvements in manufacturing processes and products.
Job creation and economic growth: The growing demand for domestically produced steel will create jobs in manufacturing and related sectors, contributing to economic growth and supporting local communities.

Conclusion

The revised Domestically Manufactured Iron and Steel Products Policy-2025 is a major step towards empowering India’s iron and steel industry and reducing the country’s dependence on imported products. The policy provides a framework for government procurement that prioritizes domestic manufacturers, encourages innovation and strengthens India’s position in the global marketplace. By providing a clear set of rules and incentives for domestic producers, the policy aims to foster a thriving and self-sufficient steel sector that can contribute to long-term economic growth and job creation.

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