Centre Tightens Steel Procurement Norms with New ‘Melt and Pour’ Rule for Government Projects

In a firm thrust towards developing indigenous manufacturing and cutting back on the reliance on imported components, the Central government has issued a notification of the Domestically Manufactured Iron & Steel Products (DMI&SP) Policy 2025, instituting a vital “melt and pour” condition on steel utilized in all government sector and government infrastructure undertakings.

According to the new policy, all the steel used in such projects has to be completely made in India from melting raw material to pouring and final shaping. This is a departure from previous procurement standards that allowed partially imported steel, provided it contained at least a minimum level of domestic value addition.

The new “melt and pour” requirement makes sure that each phase of the steel making process takes place in the country, relying on simple raw materials from within the nation. The move is meant to plug loopholes that have hitherto permitted foreign-origin steel to be eligible for government contracts after a minimal amount of processing in India.

The policy also prioritizes steel produced by Public Sector Undertakings (PSUs), thus reaffirming the government’s intent to favor its industries while also deepening local industrial value chains.

Officials say the updated DMI&SP policy is closely aligned with the broader Make in India initiative, and is expected to deliver multiple benefits ranging from reduced reliance on imports to increased job creation and improved competitiveness of the Indian steel industry.

In practical terms, the new norms will limit foreign participation in government-funded projects, compelling contractors and infrastructure developers to source steel entirely from Indian manufacturers. This is anticipated to bolster demand for Indian steelmakers and create a more self-reliant industrial ecosystem.

The Ministry of Steel is expected to oversee strict enforcement of the policy, with mechanisms in place to verify compliance at every stage of project execution.

With the DMI&SP Policy 2025 now in effect, the government signals a strong commitment to fostering domestic manufacturing, ensuring that India’s infrastructure growth is firmly built on homegrown steel.