The Centre is preparing to launch a ₹5,000-crore incentive scheme to encourage the adoption of green technologies in India’s steel industry, with the programme expected to be rolled out within the next three months.
The proposed scheme is aimed at helping steel manufacturers reduce carbon emissions and accelerate the shift towards cleaner and more sustainable production methods. It forms part of the government’s broader strategy to decarbonise one of India’s most energy-intensive industries.
Officials said the incentives will support companies investing in advanced technologies that lower greenhouse gas emissions during steel production. These could include the use of renewable energy, green hydrogen, energy-efficient manufacturing processes and carbon capture technologies.
India is the world’s second-largest steel producer, but the sector is also among the country’s biggest industrial sources of carbon emissions. The government believes that promoting low-carbon steel production will help India meet its climate commitments while ensuring the industry remains globally competitive.
The scheme is expected to encourage private investment in cleaner technologies, reduce dependence on conventional fossil fuel-based production and improve the long-term sustainability of the steel sector. It is also likely to support research, innovation and the commercial adoption of green manufacturing solutions.
The proposed initiative complements India’s broader push towards green manufacturing and aligns with its target of achieving net-zero carbon emissions by 2070. It also comes at a time when several countries are introducing stricter environmental standards for imported steel.
Once launched, the scheme is expected to provide a significant boost to the domestic steel industry by encouraging cleaner production, strengthening export competitiveness and supporting India’s transition towards a low-carbon economy.