The Government of India has significantly tightened its steel procurement framework with the rollout of the revised Domestically Manufactured Iron & Steel Products (DMI&SP) Policy 2025, effective from April 1, 2025. The updated policy mandates that all central government ministries, public sector undertakings (PSUs), and affiliated agencies prioritise locally produced steel for procurement contracts valued over ₹5 lakh (~US $6,000).
A key feature of the policy is the stringent ‘Melt and Pour’ requirement, which specifies that steel must be entirely manufactured in India, effectively limiting participation to domestic steelmakers such as Tata Steel, JSW Steel, and SAIL. Contracts below ₹200 crore can no longer be tendered globally without prior government approval, reinforcing the “Make in India” initiative and strengthening domestic industry participation.
Additional provisions include quality and certification controls-where imported steel must meet Indian technical standards-and a reciprocal bidding ban, which excludes companies from countries that restrict Indian firms in their own tenders.
The policy is designed to run for five years, with room for conditional waivers. According to industry experts and reports, this initiative is expected to stabilise steel prices, boost capacity utilisation, and reduce dependence on cheaper imports.
Looking ahead, the government is also preparing to mandate green-rated steel procurement for central infrastructure projects starting in FY 2028. Under the draft guidelines, minimum requirements include 20 per cent procurement of 3-star, 5 per cent of 4-star, and 1 per cent of 5-star green steel, encouraging the use of environmentally sustainable materials in public construction.
This strategic shift positions India’s steel sector for a more self-reliant, cleaner, and resilient future.
