India's Green Steel Mission and Decarbonisation Efforts
Key Ideas
  • India launches ₹15,000 crore ‘Green Steel Mission’ to reduce carbon emissions in the steel sector, aiming to transform the industry with incentives for green steel and renewable energy promotion.
  • Collaboration with the Ministry of New and Renewable Energy focuses on increasing the use of green hydrogen in steel manufacturing, with ₹455 crore allocated for pilot projects until FY2029-30.
  • PLI scheme for specialty steel aims to reduce import reliance, with companies committing ₹27,106 crore investment to produce 7.90 million tons of specialty steel by October 2024.
  • Despite abundant reserves of non-coking coal, India sees rising coking coal imports, highlighting the need for sustainable practices in steel production to meet growing demand.
The Indian government has launched a ₹15,000 crore ‘Green Steel Mission’ to address carbon emissions in the steel sector, contributing significantly to the country’s total emissions. This initiative includes a production-linked incentive (PLI) for green steel, encouragement for renewable energy adoption, and mandates for government procurement of green steel. In alignment with decarbonisation objectives, the Ministry of Steel collaborates with the Ministry of New and Renewable Energy to boost the use of green hydrogen in steel manufacturing, supported by an allocated fund of ₹455 crore for pilot projects until FY2029-30. Additionally, a PLI scheme for specialty steel has been introduced to curb import dependency, with companies committing over ₹27,000 crore to produce 7.90 million tons of specialty steel by October 2024. Despite India's vast reserves of non-coking coal, there is a concerning uptick in coking coal imports, emphasizing the necessity for sustainable steel production practices. The steel ministry remains dedicated to reducing emissions, enhancing domestic production, and meeting the rising steel demand sustainably, aiming for a balance between economic growth and environmental stewardship.
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