The Indian government has officially revised its Domestically Manufactured Iron & Steel Products (DMI&SP) Policy for 2025, introducing the ‘melt and pour’ rule. This regulation mandates that all steel used in government-funded projects must be entirely produced within India, encompassing both the melting and pouring processes. The policy aims to bolster the domestic steel industry, reduce dependency on imports, and ensure transparency and self-reliance in public infrastructure development.
Under the new guidelines, steel products must be smelted and poured from basic raw materials within India to qualify for public procurement. This move eliminates previous loopholes that allowed imported steel to qualify for government projects after minimal processing in India. The policy applies to all government ministries, departments, and agencies, as well as projects funded by these entities, with a threshold value of ₹5 lakh for procurement. The revised policy also includes provisions to restrict foreign participation in Indian government tenders. It bars foreign entities from bidding on contracts if their home countries restrict Indian companies from participating in their government tenders, except for specific items or steel grades not produced domestically.
Industry experts and stakeholders have welcomed the policy, viewing it as a significant step toward achieving the government’s ‘Atmanirbhar Bharat’ (Self-Reliant India) vision. The move is expected to stimulate local manufacturing, create employment opportunities, and enhance the competitiveness of Indian steel producers in the global market.
