The Indian government is preparing to introduce a national green steel mission by December this year, with the definition of green steel products expected to be finalized in October. This initiative, which draws inspiration from the National Green Hydrogen Mission, is aimed at promoting sustainable steel production, according to Sandeep Poundrick, secretary of the Ministry of Steel.
The mission comes as countries face increasing pressure to lower carbon emissions in manufacturing, particularly with the introduction of the European Union's Carbon Border Adjustment Mechanism (CBAM). A significant aspect of the plan will be to boost the share of green steel in public procurement.
Currently, around 10-20% of the steel purchased by government agencies qualifies as green steel, according to Poundrick. However, this percentage is expected to grow in the coming years as the production of environmentally friendly steel increases.
To facilitate this transition, the government may reallocate up to 30 billion Indian rupees (approximately USD 356.8 million) from unused funds under the previous production-linked incentive (PLI) scheme for specialty steel. These funds could be directed towards encouraging green steel production, pending necessary approvals.
As India's steel consumption surges, driven by rapid economic growth, the government is also revisiting its 2017 national steel policy and the scrap policy introduced in 2019. This review aims to align the country's steel industry with its sustainability goals.
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