India gears up for national green steel mission as demand surges

The Centre plans to launch a green steel mission by the end of 2024 to promote sustainable steel production in India. Secretary of the Ministry of Steel, Mr. Sandeep Poundrik, stated that the initiative, modelled after the National Green Hydrogen Mission, will incentivize industry players to increase green steel output amid growing global pressure to reduce carbon footprints. The European Union's proposal to impose a 25% 'carbon tax' on steel and aluminium imports further underscores this urgency. He mentioned that a formal definition of green steel is expected by October, which will help facilitate the mission's rollout by December. Currently, government procurement of green steel is around 10% to 20%, which is anticipated to rise as production increases.

To support this shift, the government is considering reallocating approximately US$ 357.4 million (Rs. 3,000 crore) in unspent funds from the earlier Production-Linked Incentive (PLI) scheme for specialty steel to incentivize green steel production, pending necessary approvals. As India's steel consumption continues to surge due to rapid economic growth, the government is also reviewing the National Steel Policy 2017. The Steel Scrap Policy was introduced in 2019, prioritizing the expansion of green steel capacity. He noted, "The 2017 policy projected India's capacity requirement by 2030 at around 300 million tonnes, but current demand is outpacing expectations." The ministry also addresses implementation challenges in the steel scrapping policy, particularly within the unorganized sector, which plays a significant role in recycling steel scrap.

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