Government plans Rs. 5,000 crore (US$ 569 million) scheme to promote decarbonisation: Secretary, Ministry of Steel, Mr. Sandeep Poundrik

The government is developing a Rs. 5,000 crore (US$ 569 million) scheme to encourage the adoption of clean steel-making technologies, aiming to reduce carbon emissions from the sector, Secretary, Ministry of Steel, Mr. Sandeep Poundrik said. The initiative, part of a proposed National Mission for Sustainable Steel, will cover all steel manufacturers in India, with 75-80% of the funds targeted at secondary players. It seeks to incentivise lower carbon emissions by promoting cleaner production processes and alternative materials, supporting India’s commitment to the Paris Agreement and net-zero goals.
He explained that incentives will be linked to the reduction in carbon emissions compared with the previous year, encouraging technological upgrades while measuring decarbonisation as the primary outcome. The scheme is expected to become operational in the coming months. The steel sector, a hard-to-abate industry, contributes around 12% of India’s greenhouse gas emissions, with an emission intensity of 2.55 tonnes of CO₂ per tonne of crude steel, above the global average of 1.9 tonnes.

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