Govt to Launch Rs 5,000 Cr Scheme for Steel Decarbonisation

• The government is launching a ₹5,000 crore program to promote clean steel-making technologies
• 75-80% of the funds will be allocated to secondary steel producers
• The initiative aligns with India’s Paris Agreement commitments

Recently, Steel Secretary Sandeep Poundrik said the government is working on a ₹5,000 crore program to promote clean steel-making technology and carbon emissions reduction. Speaking with PTI at the "FT Live Energy Transition Summit India'' in New Delhi.

Poundrik said the program would include all steel making companies in India and that 75-80% of the funds would be directed to secondary producers. "The proposal is under consideration for a National Mission for Sustainable Steel. It is a ₹5,000 crore scheme", he added.

The program aims to encourage low-carbon steel production using clean technologies and alternative feedstocks. This is in support of India's commitment as a signer of the Paris Agreement and to reach net-zero.

Mr. Poundrik said the program is expected to be put into action in the near future in support of India's transition for energy.

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He stated, "Basically, this scheme is that you will get incentives depending on how much you reduce the emission...if you reduce your carbon emission as compared to your last year...What we are saying is to improve the technologies, but the output parameter we are measuring is decarbonisation".

As per government data, India's domestic steel industry accounts for 12% of the country's greenhouse gas emissions. The emission intensity is 2.55 tonnes of CO2 per tonne of crude steel, which is significantly higher than the global average of 1.9 tonnes.

The new scheme will aim to close this gap by incentivizing sustainable production practices and supporting India's transition to a low carbon steel sector.