Scheme for Promotion of Research and Development in Iron and Steel Sector

The Scheme for Promotion of Research and Development (R&D) in Iron and Steel Sector is an initiative launched by the Ministry of Steel, Government of India, to enhance technological innovation and scientific research in the iron and steel industry. The scheme provides financial assistance and institutional support for projects that aim to address critical challenges in production efficiency, raw material utilisation, and sustainable steelmaking practices. It is open to collaborations among industry players, research laboratories, and academic institutions across the country.

Background and Purpose

India is one of the largest producers and consumers of steel globally, and the sector plays a vital role in industrial growth and infrastructure development. However, challenges such as dependence on imported technology, high energy consumption, limited utilisation of low-grade raw materials, and environmental constraints necessitate continuous research and innovation.
The Government of India introduced this scheme to strengthen indigenous technological capabilities, reduce production costs, improve product quality, and ensure environmental sustainability. It forms part of the government’s broader strategy to make India’s steel industry globally competitive while promoting self-reliance in critical technologies.

Objectives of the Scheme

The key objectives of the scheme are as follows:

• To promote and support R&D activities in the iron and steel sector, encouraging collaboration between academia and industry.
• To develop technologies for efficient utilisation of iron ore fines, slimes, and non-coking coal.
• To reduce energy and water consumption in steel production through innovative processes and equipment.
• To enhance product quality and standardisation in steelmaking routes including blast furnace, electric arc furnace, and induction furnace processes.
• To develop low-carbon and environmentally friendly technologies that align with India’s climate commitments.
• To utilise industrial and mining wastes such as slags, fly ash, and dust in value-added applications.
• To increase domestic innovation capacity by encouraging applied research, pilot projects, and technology demonstration at industrial scale.

Thrust Areas of Research

The scheme identifies specific research domains and focus areas to maximise its impact. These include:

• Development of innovative technologies for the utilisation of low-grade iron ore and non-coking coal.
• Beneficiation and agglomeration of raw materials to enhance quality and reduce waste.
• Process optimisation for higher energy efficiency and lower emissions in steel production.
• Waste management and recycling, including recovery of valuable metals and utilisation of slag and dust.
• Waste heat recovery systems and other energy conservation measures in iron and steel plants.
• Research on low-carbon and hydrogen-based steelmaking technologies.
• Development of advanced steels with improved strength, corrosion resistance, and suitability for critical applications.
• Promotion of steel-intensive designs in construction, transport, and infrastructure projects to boost steel consumption.

Implementation and Structure

The scheme operates through collaborative projects involving one or more of the following:

• Steel producers or industry associations.
• Academic institutions such as IITs, NITs, and other engineering colleges.
• Research organisations such as CSIR laboratories or autonomous institutions under the Ministry of Steel.

Proposals are invited periodically under specific calls for R&D projects. Each proposal undergoes a technical and financial evaluation by expert committees based on criteria such as scientific relevance, innovation potential, industrial applicability, and cost-effectiveness.
Approved projects receive financial assistance from the Ministry of Steel, while the participating industry partners contribute both technically and financially. The projects may range from laboratory-scale studies to pilot or demonstration plants, depending on their maturity and potential for commercial adoption.

Funding Pattern and Financial Support

The scheme provides grant-in-aid for eligible R&D projects. Typically, funding covers costs related to manpower, equipment, consumables, testing, and pilot-plant operations. Industry partners are required to contribute a portion of the total project cost, ensuring shared ownership and commitment.
The government allocates funds annually for the scheme as part of the Ministry of Steel’s budget. The scale of assistance depends on the size and scope of each project, and priority is given to projects that demonstrate significant potential for industrial application and national benefit.

Achievements and Impact

Since its inception, the scheme has supported numerous projects leading to the development of indigenous technologies for iron ore beneficiation, utilisation of waste materials, energy-efficient furnaces, and improved steel quality. It has contributed to:

• Reduction in dependence on imported technologies.
• Enhancement of research capability within Indian institutions.
• Promotion of sustainable steelmaking through waste utilisation and emission control.
• Creation of a strong industry–academia interface, fostering innovation culture in the steel sector.

Additionally, successful R&D outcomes from the scheme have the potential to be commercially scaled up, benefiting the broader industry and contributing to national goals of decarbonisation and self-reliance.

Significance and Future Prospects

The scheme is significant for strengthening India’s position as a global steel producer while promoting environmental sustainability. With increasing emphasis on green steel, hydrogen-based technologies, and circular economy principles, the scheme continues to evolve to align with emerging global trends.
In the coming years, greater focus is expected on:

• Transitioning towards carbon-neutral production methods.
• Enhancing digitalisation and automation in steel manufacturing.
• Promoting resource-efficient practices and use of renewable energy.
• Strengthening the commercialisation of R&D outcomes through partnerships with public and private industries.