Govt plans Rs 5,000 crore scheme to help steel industry adopt green technologies

The Centre is planning to roll out a Rs 5,000 crore scheme in the coming months to promote the adoption of cleaner technologies in the steel sector as part of efforts to reduce carbon emissions. The proposed scheme, National Strategy for Sustainable Secondary Steel, is expected to be launched in the coming months, a senior government official said. 

The scheme will cover all steelmakers in the country, although a major share of the financial support is expected to be earmarked for secondary steel producers. The National Strategy for Sustainable Secondary Steel aims to encourage the adoption of clean technologies and alternative materials across various steelmaking processes to cut carbon emissions from the domestic steel industry. 

The steel sector is among the country’s largest carbon emitters. According to official data, India’s steel industry accounts for 10-12% of the country’s greenhouse gas emissions, with an emission intensity of 2.55 tonnes of CO₂ per tonne of crude steel, higher than the global average of about 1.9 tonnes of CO₂ per tonne of crude steel.