The Central government has formally notified the Domestically Manufactured Iron & Steel Products (DMI&SP) Policy 2025, introducing a major shift in steel procurement norms for public sector and government infrastructure projects.

The revised policy prioritises steel sourced from public sector undertakings (PSUs) and mandates compliance with the ‘melt and pour’ condition. This condition stipulates that the entire steel production process, from melting crude steel to pouring and shaping, must occur within India, using basic raw materials sourced domestically. The move is designed to curb reliance on imported steel that undergoes only minor value addition in India, yet qualifies under earlier procurement rules.

Previously, government projects could procure steel which met a minimum domestic value addition requirement, allowing foreign-origin steel to be partially processed in India. The new policy aims to tighten regulations and promote complete domestic steel manufacturing, aligning with the government’s Make in India initiative and strengthening local supply chains. The policy is expected to restrict foreign participation in government projects and ensure greater use of Indian-origin steel, thus supporting domestic industry and employment.