In a significant move to address the challenges facing India’s secondary steel producers, a new national-level apex industry body has been established: the National Sustainable Steel Association (NSSA). The formation of this association marks a concerted effort by secondary steel producers, who contribute nearly 40% of the country’s steel production, to unite their fragmented voices and push for better industry policies and greater representation in government discussions.
The initiative comes at a time when the steel sector is grappling with a growing divide between primary steel manufacturers, who have been advocating for protection from cheap imports through safeguard duties, and the secondary steel sector, which faces its own set of challenges, including access to raw materials and funding for modernization. The government has already initiated steps toward introducing safeguard duties to protect primary steel makers, but secondary steel producers are seeking their own relief through the new association. The NSSA, headquartered in Delhi, aims to work as a unified voice to represent over 5,000 small and medium-sized secondary steel producers, many of whom have struggled to make an impact individually. According to Vijay Jhawar, the President of NSSA, the association’s mission is clear: to address critical issues within the sector and push for government policies that will benefit all stakeholders. “This is just the beginning of our mission to advocate for the entire steel industry,” Jhawar said, emphasizing the need for a collective effort to create a stronger voice for secondary steel units.
One of the key focuses of the NSSA will be ensuring consistent and affordable access to raw materials for its members, including direct reduced iron (DRI) units, electric arc furnaces (EAFs), and re-rolling mills. The sector is also eager to implement advanced technologies that could improve productivity and sustainability while expanding market reach. Another important agenda for the association will be working closely with the government to develop industry-friendly policies, which would help stimulate growth and tackle long-standing challenges.
However, the secondary steel sector has faced significant hurdles. It currently struggles with insufficient raw materials supply and a funding crunch for essential upgrades and modernisation. These challenges have led to a steep decline in the sector’s share of the country’s overall steel production, which has dropped from 57% in 2015 to 37% in 2023. As a result, the NSSA plans to build its membership base, with an initial target of 2,500 members nationwide in the first phase. The secondary steel sector is vital to the Indian economy, not only due to its size but also because of its role in providing affordable steel for various industries. By coming together under the NSSA, these producers hope to address the challenges they face more effectively, secure better policy frameworks, and ultimately revive their shrinking market share in the country’s growing steel industry.
