New Delhi: The Steel Ministry is finalising a policy that prescribes domestic steel manufacturers to step up their investment on research and development to 2 percent of the turnover by 2020.
"The policy aims at increasing the R&D investments in India from the current levels of 0.15 - 0.3 percent of the turnover to one per cent by the year 2015-16 and two percent by the year 2020," the ministry said in an official statement.
An official spokesperson said the policy is in the final stages of preparation and would be unveiled soon.
The policy, the statement said, would also lay emphasis on development of alternative iron-making technologies and adoption of technologies like Finex, Fastmelt and ITmK3.
"It will also aim at providing incentives to encourage setting-up iron ore beneficiation and coal cleaning facilities," it said.
Besides, it will also focus on strengthening in-house R&D set-ups of steel companies and development of indigenous capabilities for manufacturing.
The performance standards of the domestic steel industry is poor when compared with the advanced countries. Apart from poor quality of raw material that causes the poor performance, prevalence of obsolete technology and lack of R&D to overcome the technological gaps are also noticeable.
India's steel demand is projected to go up to 115 million tonnes by 2016-17 from around 70 million tonnes now.