The government is preparing to launch a ₹5,000-crore national mission to help the steel industry transition to cleaner and more sustainable production methods. The initiative will target both primary steelmaking (blast furnace-based) and secondary steelmaking (electric arc and induction furnaces), with the overarching goal of cutting carbon emissions.
Focus on Secondary Producers
According to N. N. Rao, secretary, ministry of steel, secondary producers—who rely heavily on scrap and sponge iron and account for nearly half of India’s steel output—will be a major focus. The mission will support these producers in adopting low-carbon technologies and enhancing energy efficiency.
Financial Support and Incentives
To accelerate the shift toward greener production, the scheme will deploy a mix of financial tools, including concessional loans, risk guarantees, and targeted incentives. These measures aim to reduce barriers for steelmakers investing in sustainable practices and technologies.
Promoting Renewable and Efficient Practices
Beyond financing, the mission may encourage industries to use renewable energy sources, upgrade raw materials, and improve operational practices. Together, these steps should help the sector reduce its carbon footprint while maintaining competitive production.
Part of a Broader Green Steel Vision
The initiative is likely to be launched in the next financial year, following necessary approvals. It forms a key element of the government’s broader Green Steel Mission, which may also feature production-linked incentives (PLI), policies to boost government procurement of green steel, and initiatives to stimulate demand for low-carbon steel products.
Aligning with National Climate Goals
These efforts align with the targets of the National Steel Policy 2017, which seeks to lower carbon dioxide emissions to 2.6–2.7 tonnes per tonne of crude steel by 2030, largely through greater adoption of electric arc furnace technologies. Knnindia.co.in reports that this mission will position India’s steel sector on a path that balances industrial growth with environmental responsibility, directly contributing to the nation’s long-term climate and sustainability goals
