Industry Calls for National Stainless Steel Policy to Combat Corrosion Losses
Industry leaders on Tuesday urged the Indian government to formulate a National Stainless Steel Policy to address the staggering annual loss of Rs 12 lakh crore due to corrosion. The call comes as India's installed stainless steel production capacity stands at approximately 7.5 million tonnes, yet operates at only 60-65 per cent capacity utilisation, according to industry representatives.
Production Capacity and Utilisation Gap
The current underutilisation of production capacity highlights a significant opportunity for growth and economic benefit. By implementing a dedicated policy, stakeholders believe India can not only reduce corrosion-related losses but also boost domestic manufacturing and employment. The policy would aim to promote the use of stainless steel in infrastructure, construction, and other sectors where corrosion is a major concern.
"A National Stainless Steel Policy is essential to harness the full potential of the industry and mitigate the enormous economic drain caused by corrosion," said a spokesperson from the Indian Stainless Steel Development Association. The association estimates that corrosion costs India about 4-5 per cent of its GDP annually, which could be substantially reduced through increased use of stainless steel.
Benefits of Stainless Steel in Infrastructure
Stainless steel offers superior corrosion resistance compared to conventional materials, leading to longer lifespan and lower maintenance costs for infrastructure projects. Industry experts argue that mandating or incentivising the use of stainless steel in key sectors such as bridges, water supply systems, and coastal structures could dramatically cut corrosion losses.
The proposed policy would also address challenges like raw material availability, technology upgradation, and skill development to enhance competitiveness. It is expected to create a roadmap for increasing capacity utilisation to over 80 per cent in the next five years, aligning with the government's Atmanirbhar Bharat (Self-Reliant India) initiative.
Economic Impact and Job Creation
Beyond curbing losses, a robust stainless steel policy could spur job creation and export opportunities. India is currently the second-largest producer of stainless steel globally, but per capita consumption remains low at around 2.5 kg, compared to the global average of 6 kg. Increasing domestic consumption would not only save costs but also reduce import dependency for corrosion-resistant materials.
Industry leaders emphasised that the policy should include fiscal incentives, research and development support, and standards mandating stainless steel use in critical applications. They also called for awareness campaigns to educate stakeholders about the long-term economic and environmental benefits of stainless steel.
According to Mrityunjay Bose, reporting for the publication, the industry's appeal comes ahead of the upcoming budget session, where they hope the government will consider the proposal to safeguard the economy from preventable corrosion damage.
