Domestically Manufactured Iron & Steel Products (DMISP) Policy – 2025

Source: BL

Context: The Centre has unveiled the Domestically Manufactured Iron & Steel Products (DMISP) Policy – 2025 to curb rising steel imports and promote self-reliance.

• It mandates exclusive use of Indian steel in government procurement, with a reciprocal clause targeting non-reciprocating nations like China.

About Domestically Manufactured Iron & Steel Products (DMISP) Policy – 2025:

• What is the Policy? A revised procurement framework by the Government of India, prioritising Indian-made steel for public sector contracts and infrastructure projects to boost local industry and reduce dependence on imports.

• A revised procurement framework by the Government of India, prioritising Indian-made steel for public sector contracts and infrastructure projects to boost local industry and reduce dependence on imports.

• Ministry Responsible: Ministry of Steel

• Objectives of the Policy

• Promote Atmanirbhar Bharat: Ensure self-reliance in steel by encouraging domestic production and procurement. Curb Surging Imports: Tackle rising imports threatening Indian steel mills. Protect Indian Industry: Shield Indian manufacturers from foreign competition in government contracts. Enhance Domestic Value Addition: Ensure capital goods used in steel manufacturing are locally sourced.

• Promote Atmanirbhar Bharat: Ensure self-reliance in steel by encouraging domestic production and procurement.

• Curb Surging Imports: Tackle rising imports threatening Indian steel mills.

• Protect Indian Industry: Shield Indian manufacturers from foreign competition in government contracts.

• Enhance Domestic Value Addition: Ensure capital goods used in steel manufacturing are locally sourced.

• Key Features of DMISP Policy – 2025: Mandatory Indian Steel Usage:

• Mandatory Indian Steel Usage:

• Applicable to all government ministries, PSUs, trusts, and statutory bodies. Covers flat-rolled steel, rods, bars, rails, etc. Steel must meet the ‘Melt & Pour’ condition – i.e., melted and solidified in India.

• Applicable to all government ministries, PSUs, trusts, and statutory bodies.

• Covers flat-rolled steel, rods, bars, rails, etc.

• Steel must meet the ‘Melt & Pour’ condition – i.e., melted and solidified in India.

• Reciprocal Clause:

• Countries that bar Indian firms from public procurement are denied access to Indian government tenders (e.g., China, targeted specifically). Ministry approval is mandatory for exceptions.

• Countries that bar Indian firms from public procurement are denied access to Indian government tenders (e.g., China, targeted specifically).

• Ministry approval is mandatory for exceptions.

• Ban on Global Tenders:

• No Global Tender Enquiries (GTEs) for iron & steel products. GTEs for capital goods only allowed above ₹200 crore with prior clearance.

• No Global Tender Enquiries (GTEs) for iron & steel products.

• GTEs for capital goods only allowed above ₹200 crore with prior clearance.

• Domestic Value Addition Mandate:

• Capital goods (like furnaces, rolling mills) must have at least 50% local value addition. Certified by statutory or cost auditors for authenticity.

• Capital goods (like furnaces, rolling mills) must have at least 50% local value addition.

• Certified by statutory or cost auditors for authenticity.

• Procurement Thresholds:

• Applies to all contracts above ₹5 lakh, including centrally funded and state-executed schemes.

• Monitoring & Compliance:

• A Standing Committee headed by the Secretary (Steel) to oversee the compliance checks, grievance redressal and granting exemptions (only if local supply is inadequate)

• Penalties for False Declarations:

• False self-certification may lead to Blacklisting and Forfeiture of earnest money deposits.