India's Green Steel Mission: A Path Towards Decarbonization
Key Ideas
  • The Indian government is launching the 'Green Steel Mission' with an investment of Rs 15,000 crore to reduce carbon emissions and achieve Net Zero Target in the steel industry.
  • Initiatives include a PLI Scheme for Green Steel, incentives for renewable energy use, and mandates for government agencies to purchase Green Steel.
  • The National Green Hydrogen Mission aims to produce and utilize green hydrogen in the steel sector, contributing to decarbonization efforts.
  • Efforts include the release of reports, taxonomies, and pilot projects focusing on green steel production, resource efficiency, and reducing coal consumption.
The Ministry of Steel in India is spearheading the 'Green Steel Mission' with a budget of Rs 15,000 crore to aid the steel industry in reducing carbon emissions and moving closer to achieving the Net Zero Target. The mission comprises various initiatives, including implementing a Production-Linked Incentive (PLI) Scheme for Green Steel, offering incentives for the adoption of renewable energy, and enforcing regulations for government agencies to procure Green Steel to enhance environmental sustainability. Additionally, the National Green Hydrogen Mission, led by the Ministry of New and Renewable Energy, is integrating the steel sector into the broader goal of producing and utilizing green hydrogen to support decarbonization efforts. The Ministry of Steel has released reports and taxonomies to guide the industry towards green steel production, with a focus on resource efficiency and reducing coal consumption. Pilot projects have been awarded to explore the production of Direct Reduced Iron (DRI) using hydrogen as well as injecting green hydrogen into existing infrastructure to decrease reliance on natural gas. Furthermore, the government has introduced a Production-Linked Incentive (PLI) Scheme to attract investments and promote domestic manufacturing of 'Specialty Steel'. This initiative has already seen significant commitments from companies and aims to reduce imports while boosting production and employment opportunities. Efforts are also underway to position India as a global leader in the steel industry by formulating a comprehensive strategy focused on raw materials, investments, technologies, and steel exports. In line with quality control, the government is working on setting standards for steel consumption in the country to ensure uniform specifications and quality across manufacturers. By enforcing quality control orders (QCO), only quality products meeting BIS standards will be supplied. These measures are part of a larger strategy to enhance the steel industry's sustainability and global competitiveness.
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