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Govt Enforces ‘Melt and Pour’ Rule for All Steel in Public Projects

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Announcement 28 May 2025 10:42 AM IST Economic Times

Direct benefits for domestic steelmakers.

Govt projects will exclusively use Indian-made steel.

Tightens restrictions on imported steel in public works.

The Indian government has officially notified the ‘Melt and Pour’ rule under its revised steel procurement policy for public projects. As per this new directive, only steel that is melted and poured into its initial solid form within India will be eligible for use in government infrastructure and public sector undertakings.

Earlier, under the minimum value addition rule, imported steel could be processed domestically and still be considered for government projects. The new ‘Melt and Pour’ condition aims to plug this loophole and ensure the core manufacturing process happens within the country.

The policy bars global tenders for contracts up to ₹200 crore unless expressly approved by the Department of Expenditure. This decision is expected to offer a competitive advantage to domestic steel manufacturers and boost the government’s ‘Make in India’ initiative.

Industry experts believe this move will enhance domestic steel production capacity and reduce reliance on imports. It also ensures transparency and fair competition in public procurement while strengthening the local industry.