Centre Archives - Corporate Updates

Centre to launch ₹5,000-cr green steel scheme

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.

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Centre puts 60% free airline seat rule on hold

The Centre has put on hold its directive that required airlines to offer at least 60% of seats for free selection, following strong objections from the aviation industry. The rule, which was expected to come into effect later this month, aimed to make air travel more affordable and transparent for passengers.

The policy was introduced to reduce additional charges levied on travellers for choosing seats. Under the proposed rule, a majority of seats on every flight would have been available at no extra cost, limiting airlines’ ability to charge for seat selection except for premium options.

However, airlines pushed back against the move, arguing that seat selection fees are an important part of their ancillary revenue. They warned that restricting this income stream could disrupt their pricing strategies and financial stability. According to industry players, such a mandate could eventually lead to higher base fares, shifting the burden back onto passengers in a different way.

Airlines also highlighted that India follows a deregulated aviation market, where ticket pricing and related services are largely determined by market forces. They expressed concerns that imposing such rules could interfere with this system and create operational challenges.

In response, the government decided to suspend the order for now and review the proposal in detail. Officials indicated that the decision was taken to balance passenger interests with the financial health of airlines, especially at a time when the sector is dealing with rising fuel costs and other expenses.

While the pause brings relief to airlines, it means passengers will continue to pay for preferred seat selection under existing practices. The anticipated benefit of wider access to free seats will have to wait until a final decision is made.

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