Parliament Question: Value Addition in Chhattisgarh's Steel Sector

GOVERNMENT OF INDIA MINISTRY OF MINES LOK SABHA UNSTARRED QUESTION NO. 4132 ANSWERED ON 12.08.2026 VALUE ADDITION IN CHHATTISGARH'S STEEL SECTOR

4132. SMT. ROOPKUMARI CHOUDHARY:

Will the Minister of MINES be pleased to state:

(a) whether the Government has assessed the potential for promoting downstream steel industries and value-added steel manufacturing in major steel-producing States, particularly Chhattisgarh and if so, the details thereof;

(b) the details of domestic demand, production and imports of finished and value- added steel products during the last five years, indicating the sectors where imports continue despite adequate domestic availability of raw materials;

(c) whether the Government has formulated any policy or incentive to encourage the establishment of downstream steel industries, steel parks and manufacturing clusters near mineral-producing regions to enhance value addition and employment and if so, the details thereof; and

(d) the steps taken by the Government to improve investment, promote local value addition and maximise the economic benefits of steel resources for mineral-producing States such as Chhattisgarh? ANSWER THE MINISTER OF STATE FOR COAL AND MINES (SHRI SATISH CHANDRA DUBEY)

(a) to (d): Steel is a deregulated sector, and the Government acts as a facilitator by creating a conducive policy environment to enhance domestic steel production and capacity, reduce import dependence and attract investment. The Government has taken several measures to promote industrial development, attract investment, generate employment and reduce import dependence, including Chhattisgarh. These

include:

(i) Notification of the Domestically Manufactured Iron & Steel Products (DMI&SP) Policy to promote domestic manufacturing and procurement of steel in government projects.

(ii) Implementation of the Production Linked Incentive (PLI) Scheme for Specialty Steel. Under the Scheme, 167 projects of 100 companies across 15 States have been approved, including seven projects in Chhattisgarh. As of June 2026, the Scheme hasattracted cumulative investment of ₹26,320 crore, achieved cumulative production of

3.7 million tonnes (MT) and generated direct employment for 14,974 persons.

During the period between 2021-22 to 2025-26, finished steel production increased from 113.6 MT in 2021–22 to 162.4 MT in 2025–26, while consumption rose from

105.7 MT to 164.3 MT & imports increased from 4.6 MT to 6.5 MT, whereas exports declined from 13.4 MT to 6.6 MT. As of FY 2025–26, Chhattisgarh had 442 steel units with a combined installed capacity of 30 MT.

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