The Central Government is set to introduce a proposed Rs 5,000 crore incentive programme aimed at accelerating the adoption of cleaner technologies across India’s steel sector, reinforcing the country’s commitment to low-carbon industrial growth.
The proposed initiative, expected to be known as the National Strategy for Sustainable Secondary Steel, is likely to be presented to the Union Cabinet within the next few months for approval. Designed to encourage the transition towards environmentally sustainable steel production, the scheme will be open to steel manufacturers across the industry, with particular emphasis on secondary steel producers that often face financial barriers in upgrading to cleaner technologies.
The programme seeks to reduce the carbon footprint of one of India’s most emission-intensive industries while strengthening the country’s pathway towards its net-zero emissions target for 2070. India’s steel sector currently generates approximately 2.55 tonnes of carbon dioxide for every tonne of crude steel produced, significantly above the global average of around 1.9 tonnes, highlighting the need for greater investment in decarbonisation.
Beyond supporting technology adoption, the initiative is expected to enhance the competitiveness of domestic steelmakers, promote sustainable manufacturing practices and encourage the development of a robust green steel ecosystem. The proposed scheme forms part of the government’s broader strategy to balance industrial expansion with environmental responsibility, positioning the steel industry for long-term sustainable growth.