Policy for Providing Preference to Domestically Manufactured Iron & Steel Products in Government Procurement - Revised, 2025

The policy provides preference for Domestically Manufactured Iron and Steel Products (DMI&SP) in Government procurement.

The policy applies to procurement of iron & steel products notified in Appendix A. In Appendix B, the minimum domestic content and an exempted list of capital goods for manufacturing iron & steel products which can be imported have been listed. Appendix C contains the policy for promoting the procurement of technology from the indigenous technology suppliers.

Steel Manufacturing Process

Applicability of the policy for providing preference to domestically manufactured iron and steel products in Government procurement (DMI&SP)

The policy covers all Government Ministries, Departments and their agencies, including projects funded by them.
It applies to Central Sector and Centrally Sponsored Schemes where procurement is fully or partly funded by the GoI.
It extends to public sector steel manufacturers and their entities for capital goods procurement.
Appendix-B lists capital goods eligible for import and specifies minimum domestic content requirements.
The domestic value addition criteria for capital goods may change with local manufacturing capability.
A 20% purchase preference is granted to domestic suppliers of capital goods used in steel manufacturing.
Appendix-C outlines directives for CPSEs to source from indigenous technology suppliers.
The policy applies to contracts exceeding ₹5 lakh for iron and steel products.
Global Tender Enquiries are barred up to ₹200 crore for iron, steel, and capital goods procurements without DoE approval.

Implementation Monitoring by Ministry of Steel

1
The policy provisions shall be applicable for 5 years from the date of publication and may further be extended at the discretion of the Ministry of Steel.
2
MoS shall be the nodal ministry to monitor the implementation of the policy.
3
Agencies covered under DMI&SP policy shall send declaration on a quarterly basis indicating the extent of compliance to the policy and reasons for non-compliance thereof, during the preceding financial year.

Exclusions under the Policy

1
Waivers may be granted by the Ministry of Steel to all such Government procurements subject to the below conditions:
  • Where specific grades of steel are not manufactured in the country
  • Where the quantities as per the demand of the project cannot be met through domestic sources
2
Exemption requests shall be submitted to the Standing Committee along with sufficient proof of unavailability of iron & steel products domestically.

Review Mechanism

1
A Standing Committee shall be constituted by the Ministry of Steel to review requests for exemptions under the policy and ensure that they are well justified.
2
The Committee will comprise representatives from the Ministry of Steel, the user Ministry/Department, and independent technical experts.
3
The Committee shall meet periodically and make recommendations to the Ministry of Steel for granting or rejecting exemption requests.

Policy Impact and Way Forward

1
The DMI&SP policy aims to strengthen domestic manufacturing, promote innovation, and create employment opportunities in the steel sector.
2
By encouraging the use of indigenous technology and reducing import dependency, the policy contributes to the vision of “Atmanirbhar Bharat”.
3
Continuous monitoring and feedback mechanisms will ensure transparency, accountability, and long-term sustainability of the policy outcomes.

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