How Steel Is Shaping India’s Smart Cities and Mega Projects


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Mannu Chaulia
10-9-2025

Key Takeaways:

  • Steel is the backbone of India’s smart cities and mega projects due to its strength, flexibility, and sustainability.
  • Steel plays a vital role in urban transit, smart buildings, bridges, and digital infrastructure, enabling faster and durable construction.
  • Government policies like the Smart Cities Mission and National Infrastructure Pipeline are driving steel-intensive development across the country.
  • Green steel production is essential for India’s climate goals, reducing carbon emissions and promoting sustainable infrastructure.
  • Advanced materials like GFRP and CFRP complement steel, enhancing performance and longevity in urban infrastructure.

Introduction

As India is on one of the most ambitious urban transitions in modern history, the vision of “Smart Cities” and nationwide mega projects has transitioned from imagination to reality. Steel, one of the construction materials at the core of this infrastructure revolution, is being innovated to meet the demands and ensure sustainability. Steel's unique combination of strength, flexibility, and sustainability will remain the foundation for India’s next generation of urban and economic growth.

But steel isn’t acting alone. It is now being used alongside advanced materials, digital construction methods, and government policies that are reshaping the infrastructure landscape of the nation.

Steel: The Structural Spine of Urban India

The development of smart cities is reliant, in part, on strong, adaptable, and durable infrastructure. Steel is a vital component for the following reasons:

  • High strength-to-weight ratio, allowing for tall and slender structures
  • The prefabrication method of construction, which can facilitate speed and safety
  • Robustness, even when stressed seismically and climatically
  • Recyclable properties, contributing to India’s sustainability ambitions

India's story of infrastructure, from urban transport systems and smart housing to power grids and digital infrastructure, is being written in steel.

Core Infrastructure Segments Powered by Steel

1. Urban Transit Systems

Metro developments in cities such as Delhi, Mumbai, Hyderabad, and Lucknow depend heavily on steel. Steel is used for above-ground and underground construction projects and accounts for 5,000–10,000 metric tons per km of construction in viaducts, station buildings, platforms, or tunnel support. Steel's flexibility and modular approach reduce timelines and help cities reduce congestion and/or carbon emissions.

2. Smart Buildings and Skyscrapers

As urban land becomes scarce, cities are building vertically. Steel's structural characteristics make it well-suited for the construction of high-rise buildings. Pre-Engineered Buildings (PEBs) and Light Gauge Steel Framing (LGSF) allow for the timely development of office towers, hospitals, schools, and affordable housing. Smart buildings in cities like Bengaluru, Hyderabad, and Noida increasingly rely on steel buildings inherently combined with green technologies.

3. Bridges and Flyovers

Steel bridges are the lifeline of India’s mobility infrastructure, from the Howrah Bridge in Kolkata to the newly finished Mumbai Trans Harbour Link. More recent designs allow steel bridges to utilize corrosion-resistant steel, longer spans, and lighter decks, and thus, improve longevity and load carrying capacity.

4. Smart Utilities and ICT Infrastructure

Steel is central to:

  • Smart poles with integrated lighting, CCTV, and 5G modules
  • EV charging stations
  • Modular bus shelters and urban furniture
  • Smart water tanks and underground ducts

These structures, built with galvanized or weathering steel, offer long-term performance with minimal maintenance.

Emerging Materials Supporting Steel

1. Glass Fiber Reinforced Polymer (GFRP): GFRP is non-corrosive, lightweight, and usable in any extreme moisture areas. As per data sources, the GFRP rebar market has been estimated at around USD 2.1 billion in 2024, with a CAGR growth ranging between 6-13.5 % by 2032 and achieving USD 3.8 billion. Currently, the Indian market is much smaller but growing rapidly, valued at approximately USD 20 million in 2024 with a projected 17.3% CAGR through 2030. It has been anticipated that the growth has been propelled by metro expansions (e.g., Kochi, Patna, Delhi), NHAI road projects, and public tendering that now considers lifecycle costs and sustainability.

2. Carbon Fiber Reinforced Polymer (CFRP): CFRP has great tensile strength and is used in:

  • Seismic retrofitting of bridges in Himachal Pradesh.
  • Structural reinforcements of aging infrastructure in Mumbai, etc. It allows upgrading a 100-year-old steel structure without total demolition.

3. Hybrid Systems (Steel + Composites): Advanced construction today blends the best of both GFRP and CFRP:

  • Steel girders with GFRP decks in flyovers (e.g., Hyderabad)
  • Smart concrete roads reinforced with steel and embedded sensors (e.g., Delhi, Pune)
  • Composite modular infrastructure for EV hubs and public kiosks

These combinations enhance lifecycle, reduce weight, and improve performance under extreme conditions.

Policy Landscape Driving Steel in Infrastructure

1. Smart Cities Mission (SCM): The Smart Cities Mission was launched in 2015, aiming to develop 100 cities with modern infrastructure and e-governance. Around 70% of smart city investments are steel-intensive, including roads, public buildings, water systems, and public transport.

2. National Infrastructure Pipeline (NIP): A budget of ₹111 lakh crore has been allocated. NIP is a comprehensive roadmap for projects across energy, roads, urban development, and logistics. Steel is foundational to this pipeline, especially in urban infrastructure and industrial corridors.

3. PM Gati Shakti (2021): This digital platform integrates 16 ministries for coordinated infrastructure planning. The plan promotes modular, quick-deployment infrastructure, much of which depends on steel and pre-engineered components.

4. National Steel Policy (2017): This policy laid down some very ambitious targets to:

  • Increase per capita steel consumption to 160 kg by 2030
  • Promote high-grade steel production for bridges, metros, and high-rise buildings
  •  Encourage R&D in green steel and advanced alloy

5. PLI Scheme for Specialty Steel (2021): The ₹6,322 Crore is a scheme that would support local specialty steel production required for high-end infrastructure, including weather-resistant steel, electrical steel, and automotive steel .

6. Affordable Housing & Urban Renewal Schemes:

  • PMAY supports LGSF and prefab steel housing for the urban poor
  • AMRUT and HRIDAY use steel in water supply, sanitation, and heritage infrastructure

Steel and Sustainability: The Green Transition

With India’s climate commitments gaining momentum, green steel is becoming a priority. Major producers like Tata Steel, SAIL, and JSW are piloting hydrogen-based Direct Reduced Iron (DRI) and scrap-based electric arc furnaces.

Green Steel Highlights:

Green steel is rapidly becoming a significant anchor in India's sustainable development strategy. Traditional steelmaking depends on coal and emits large amounts of carbon dioxide in the production process, while green steel is produced using cleaner technologies such as electric arc furnaces (EAF) powered by renewable energy and, ultimately, hydrogen direct reduced iron (H₂-DRI). Green steel is 100% recyclable, and its end-product contributes little to CO₂ emissions, a vital component of India's Net Zero goal by 2070. Steel also contributes foundational components towards green infrastructure, from solar panel mounting systems to wind turbine towers, as well as electric vehicle charging stations, all of which rely on structural steel components.

Economic Impact of Steel in Mega Projects

Steel is an essential material for India's large infrastructure projects and industrial aspirations. India is the second-largest producer of steel in the world, and it directly and indirectly supports over 2.5 million jobs. Approximately 60% of demand for steel in India is from the construction and infrastructure sector, and total steel demand is expected to increase significantly in the future, with various policies driving towards the development. The Mumbai–Ahmedabad high-speed rail corridor, the Sagarmala port modernization programme, the fast and increasing application of digital infrastructure, along with data centers and telecom towers, together indicate that steel is playing a central role in India's economic development and transition to clean energy.

Conclusion

Steel is not just a material but a central enabler of urban and economic transformation in India. As our cities are being made smarter and mega developments become a key enabler, steel is likely to ensure the structural integrity of the megastructure, its digital readiness, and environmental sustainability.

With the strong policy intervention in green production and integration with future materials like GFRP and CFRP, steel will be the basis for a stronger, smarter India.


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