The government is launching a ₹15,000 crore ‘Green Steel Mission’ to reduce carbon emissions from the steel sector, which contributes 10-12 percent of India’s total emissions.
The mission is aimed at transforming the sector by introducing a production-linked incentive (PLI) for green steel, promoting renewable energy adoption, and mandating the procurement of green steel by government bodies.
Collaboration for Decarbonisation
In line with India’s decarbonisation goals, the ministry of steel is working closely with the Ministry of New and Renewable Energy (MoNRE) under the National Green Hydrogen Mission.
The collaboration focuses on increasing the use of green hydrogen in steel manufacturing.
To support these efforts, the government has allocated ₹455 crore until FY2029-30 for pilot projects under the initiative.
Production-Linked Incentive for Specialty Steel
To reduce reliance on imports, the government has introduced a PLI scheme for specialty steel.
Companies participating in the scheme have committed an investment of ₹27,106 crore, with plans to produce 7.90 million tons of specialty steel.
By October 2024, they have already invested ₹17,581 crore.
Rising Import of Coking Coal
India boasts abundant reserves of iron ore and non-coking coal. However, the country has seen a steady increase in coking coal imports.
Import volumes have risen from 51.20 million metric tons (MMT) in 2020-21 to 58.12 MMT in 2023-24, with 30.19 MMT imported between April and September 2024.
Commitment to Sustainable Steel Production
The steel ministry remains committed to reducing emissions and enhancing domestic steel production.
As reported by projectstoday.com, the efforts aim to meet the country’s growing demand for steel. They focus on doing so in a sustainable manner, ensuring both economic growth and environmental responsibility.
