Green Steel: The Future of Sustainable Steel Production in India

In an interaction with Thiruamuthan, Correspondent at Industry Outlook, Harsh Bansal, Managing Director of BMWIL, discusses how steel service centres have transformed into value-added processing and logistics partners, leveraging automation, digital tools, and sustainability initiatives to meet evolving industry needs while overcoming technological adoption challenges with potential support from governments and technology collaborators. Harsh Bansal, an accomplished business leader with nearly two decades of experience, specializes in strategic growth, corporate leadership, and operational excellence, with proven expertise in managing large‑scale industrial enterprises and fostering high‑impact business networks across diverse markets.

How has the role of steel service centres evolved in the last decade?

Over the past decade, steel service centres have moved beyond just storage and distribution. Today, they offer value-added services like precision cutting, slitting, surface treatment, and just-in-time deliveries. This helps manufacturers reduce waste, lower inventory costs, and speed up production. With rising demand for custom steel solutions across industries like automotive, appliances, and construction, service centres act as vital links between large steel producers and end users. Their role has shifted from being stockists to becoming processing and logistics partners, playing a key part in improving supply chain efficiency and product quality.

What kind of technologies or automation tools are commonly used by modern steel processing units today?

Modern steel processing units use CNC machines for cutting and shaping, automated coil slitting and shearing systems, laser and plasma cutting tools, and robotic material handlers. Many units have adopted IoT sensors for tracking temperature, thickness, and quality in real-time. Software like ERP and MES platforms helps manage operations, reduce downtime, and track inventory. AI and machine learning tools are also being introduced to forecast demand and improve process control. Automation not only increases precision but also ensures better safety, consistency, and faster delivery times in large-scale steel operations.

Also Read: Sustainable Refractories: Innovations Driving a Greener Steel and Cement Industry

How are service centres helping industries like auto and infrastructure meet their growing material needs?

Steel service centres support industries like auto and infrastructure by providing processed steel in exact sizes, grades, and specifications needed for different projects. This saves manufacturers time and cost in additional processing. For the auto sector, they supply lightweight, high-strength steel sheets for frames and panels. In infrastructure, they offer ready-to-use structural steel for bridges, buildings, and railways. Service centres also manage logistics and inventory for clients, ensuring timely delivery even during peak demand. Their flexibility allows manufacturers to focus on core operations without worrying about steel procurement and preparation.

What steps are steel service centres taking to become more sustainable and efficient?

To improve sustainability, many steel service centres are investing in energy-efficient machines, waste recovery systems, and digital monitoring to cut down power use. Some are using solar energy and recycling scrap steel internally. Automation helps reduce material waste and improve yield. Centres are also digitising operations to minimise paper and transport, enabling better load planning and reduced emissions. In some cases, they are working with suppliers and customers to offer low-carbon steel options and closed-loop recycling systems, contributing to circular economy goals.

What are the main challenges traditional steel companies face in adopting new technologies?

Traditional steel companies often face high upfront costs for new technologies and lack skilled manpower to operate them. Many plants still run on legacy systems, making integration with digital tools difficult. Fear of production disruptions during tech upgrades and lack of in-house IT expertise also slow adoption. Resistance to change among older staff and uncertainty about return on investment make companies hesitant. Additionally, smaller players may not get access to financial support or government schemes that could help modernization.

How can the government or technology partners support the steel industry’s transition to smarter and greener practices?

Governments can support the steel sector by offering financial incentives for automation, clean energy use, and R&D in sustainable materials. Skill development programs can train workers in operating smart machines and software. Technology partners can help by offering affordable and scalable solutions suited for small and mid-sized steel units. Creating shared infrastructure like testing labs and data platforms can reduce investment risks. Policies encouraging green procurement and tax benefits for energy-efficient upgrades can further accelerate the industry’s digital and green transition.