New Delhi: A new National Steel Policy will try to sort out issues including land acquisition and raw material security that are at present crippling the sector's growth in the country, sources said on Sunday.

"The new National Steel Policy will address a number of issues which were not addressed fully in the existing Policy of 2005 and which have a bearing on the development of steel industry in the country in the medium and long term," a source in the committee that is drafting the new policy said.

Steel projects, including those planned by ArcelorMittal, Posco and many others, worth around Rs 3 lakh crore could not take off because of various issues like land acquisition, delay in environmental clearances, among others.

The new policy will aim to help increase capital inflow into the country, overcome hurdles regarding land acquisition, assuage concerns about raw material security, and spur efficient utilisation of raw material resources and infrastructure development for the sector among others, officials said.

The 2005 policy had pegged country's steel output at 110 million tonne by 2020.

"However, the economic environment, both internationally as well as domestically, has changed a lot since then, making projections made by the National Steel Policy 2005 outdated in view of the recent trend of the higher economic growth in the country," a source said.

"It is now projected that the production capacity of 110 million tonnes may be achieved much earlier. This necessitated the need to formulate a new Policy," the source said, adding India's crude steel production capacity in 2011-12 was around 90 million tonnes.

With the ongoing capacity additions by almost all firms (both in the public and private sectors), India's production capacity is set to reach about 100 million tonnes in current fiscal itself.

Steel ministry had directed the committee, headed by steel secretary, to take into account the dynamic shift of the industry over the past few years and formulate a new set of projections, policy guidelines and the action plans not only to meet the domestic needs, but also to supply value-added quality steel in international market.

At a meeting of the apex committee in May this year, it was decided that making any projection for steel demand and production for a period of 30-40 years would be unrealistic and therefore, the projection should be made till 2025-26.

(Agencies)

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