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To address the rising steel imports and strengthen domestic industry under the Atmanirbhar Bharat initiative, the Government of India has notified the DMISP Policy – 2025, mandating the exclusive use of Indian steel in government procurement and incorporating a reciprocity clause against non-cooperative foreign countries.

About the DMISP Policy – 2025

• Nodal Ministry: Ministry of Steel
• Aim:To promote the use of domestically produced iron and steel in government-funded projects, thereby reducing import dependence, enhancing self-reliance, and safeguarding the interests of the Indian steel industry.
• Key Objectives

• Promote Self-Reliance: Advance the vision of Atmanirbhar Bharat by boosting domestic steel production and consumption.
• Curb Imports: Mitigate the adverse impact of rising steel imports on Indian steelmakers.
• Support Domestic Industry: Provide a level playing field to Indian steel manufacturers in public procurement.
• Encourage Value Addition: Increase domestic sourcing and manufacturing of capital goods used in steel production.

Salient Features of the Policy

• Mandatory Use of Indian Steel:
  • Applicable across all Union Ministries, PSUs, statutory bodies, and trusts.
  • Covers products such as flat-rolled steel, rods, bars, and rails.
  • Steel must meet the “Melt and Pour” condition — i.e., must be melted and solidified in India.
• Reciprocity Clause:
  • Nations that restrict Indian firms from participating in their public procurement (e.g., China) are barred from Indian government tenders.
  • Exceptions can be made only with the approval of the Ministry of Steel.
• Ban on Global Tenders (GTE):
  • GTEs for steel products are prohibited.
  • GTEs for capital goods (e.g., furnaces, rolling mills) are permitted only for contracts above ?200 crore, with prior clearance.
• Domestic Value Addition Requirement:
  • Capital goods used in steel production must have at least 50% local value addition.
  • Certification by statutory or cost auditors is mandatory.
• Procurement Applicability:
  • Mandatory for all government procurement above ?5 lakh.
  • Also extends to centrally funded but state-executed projects.
• Monitoring and Enforcement:
  • A Standing Committee chaired by the Secretary (Steel) will:
    • Oversee compliance and redress grievances.
    • Grant exemptions in case of non-availability of Indian products.
• Penalties for Non-Compliance:False declarations may result in blacklisting of suppliers and forfeiture of earnest money deposits.