In a significant move to strengthen its domestic steel sector, the Indian government has revised the Domestically Manufactured Iron & Steel Products (DMI&SP) Policy for 2025. The updated policy mandates that all steel used in government-funded projects must be entirely produced within India, encompassing both the melting and pouring processes—a stipulation known as the “Melt and Pour” requirement.
This policy shift aims to eliminate previous loopholes that allowed imported steel to qualify for government projects after minimal processing in India. By enforcing the complete domestic production of steel, the government seeks to bolster local manufacturing, reduce dependency on imports, and align with the broader “Make in India” initiative.
The revised policy applies to all government ministries, departments, and agencies, as well as projects funded by these entities. It covers a wide range of steel products, including flat-rolled products, bars, rods, wires, pipes, and railway components. Notably, the policy also restricts Global Tender Enquiries for contracts below ₹200 crore, unless explicitly approved by the Department of Expenditure.
Industry experts have lauded the move, highlighting its potential to enhance transparency and self-reliance in public infrastructure development. Ritabrata Ghosh, Vice President & Sector Head-Corporate Ratings at ICRA Limited, noted that the policy would ensure that steel used in government projects is genuinely domestically produced, thereby supporting local industries and employment.
The policy is set to be in effect for the next five years, with the possibility of extension at the discretion of the Ministry of Steel. It represents a strategic effort to fortify India’s steel industry, which is crucial for the nation’s economic growth and infrastructure development.
