India to Launch ₹5,000 Crore Green Steel Mission to Drive Decarbonisation in Industry – EQ
In Short : The government is planning a ₹5,000 crore scheme to drive decarbonisation in the steel industry, said Steel Secretary Nagendra Nath Sinha. The program will support green hydrogen adoption, energy-efficient technologies, and low-carbon production practices. Designed to cut emissions from the steel sector, it aligns with India’s clean energy transition and long-term net-zero commitment.
In Detail : The government is preparing a ₹5,000 crore scheme aimed at decarbonising the steel industry, one of India’s largest contributors to carbon emissions. Steel Secretary Nagendra Nath Sinha highlighted that the initiative is a critical step in aligning the sector with the nation’s clean energy vision and broader net-zero targets.
The proposed scheme will provide financial support and incentives to encourage the adoption of green hydrogen and other cleaner fuels in steel production. With traditional steelmaking heavily dependent on coal, introducing alternative methods is essential to reducing the industry’s high carbon footprint.
Energy-efficient technologies will also be a major focus under this program. By improving production processes and introducing advanced equipment, the government aims to bring down energy consumption per unit of steel manufactured, ultimately lowering both costs and emissions.
Another priority is supporting research and development in low-carbon production methods. The scheme seeks to encourage innovation and collaboration between industry players, research institutions, and technology providers to develop scalable and sustainable solutions for the future.
The steel industry is crucial for India’s infrastructure and economic growth, but it also accounts for a significant share of industrial emissions. Decarbonisation is therefore a balancing act—ensuring growth while also meeting environmental and sustainability obligations.
Officials believe that the ₹5,000 crore scheme will serve as a catalyst for attracting private investment. With government support, companies may be more willing to undertake large-scale projects involving green hydrogen and renewable energy integration in steelmaking.
Industry experts suggest that the scheme could also create new opportunities in the green economy. The adoption of cleaner technologies may open doors for job creation, skill development, and new business models within the steel value chain.
The initiative also reinforces India’s commitments under international climate agreements. By taking steps to decarbonise one of its most challenging sectors, the country sends a strong signal of its intent to balance industrial progress with environmental responsibility.
If implemented effectively, the scheme could position India as a global leader in green steel production. It would not only help reduce emissions domestically but also enhance the competitiveness of Indian steel in global markets increasingly demanding sustainable products.
