Challenging times for Steel Industry amidst geo-political uncertainties
City Air News
Apr 7, 2026 07:58
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Inputs by Vijay Sharma, Chair, Minerals & Metals Committee, PHDCCI
A once-distant geopolitical risk has become an operational challenge for the steel industry, where energy is critical. Disruptions in LPG and propane supply and rising costs are impacting production, especially for secondary steel producers.
The government has responded with measures like prioritizing gas allocation and improving coordination to stabilize supply. Meanwhile, industry players are exploring alternatives such as shifting to piped natural gas (PNG) and diversifying fuel use. However, challenges persist, including limited pipeline infrastructure, uneven PNG access, high conversion costs, and delays in connections.
For open source fuel plants, temporary use of alternative fuels like furnace oil; supported by faster environmental clearances could provide quick short-term relief. Broader implementation of these solutions requires scaling infrastructure, streamlining regulations, and ensuring equitable access to cleaner fuels. Revamping the gas supply chain is key for stability and carbon goals.
Geopolitical uncertainties may also affect export competitiveness, underscoring the need for support measures like extending RoDTEP to steel and stainless steel.
While the crisis is accelerating energy diversification and efficiency, success will depend on aligning policy, infrastructure, and industry readiness to keep the sector resilient and competitive. The industry seeks the usual support from the government during such distress.
