The Union Finance Minister, in the Budget announcement, allocated ₹20,000 crore to accelerate the deployment of Carbon Capture, Utilisation and Storage (CCUS) technologies, signalling a major push toward industrial decarbonisation.
CCUS involves capturing carbon dioxide emissions from industrial sources, utilising the captured CO₂ in applications such as chemicals production or enhanced oil recovery, or permanently storing it underground to prevent its release into the atmosphere. The technology is considered critical for reducing emissions in hard-to-abate sectors where renewable energy alone cannot deliver deep decarbonisation, including power generation, steelmaking, cement production, refineries and chemicals.
The allocation is widely seen as a strategic intervention aimed at improving the global competitiveness of India’s steel and chemical industries, particularly as export markets tighten carbon-related regulations. By supporting large-scale CCUS adoption, the government aims to help industry lower its carbon footprint while continuing to grow.
The move aligns with India’s long-term climate commitments, balancing emissions reduction with economic expansion and industrial resilience.
