India Commits Rs 200 Billion To Accelerate CCUS Deployment

12 May 2026 CW Team

Union Finance Minister Nirmala Sitharaman announced a commitment of Rs 200 billion (bn) over the next five years to accelerate Carbon Capture, Utilisation and Storage (CCUS) technologies across India. The funding aims to reduce industrial carbon emissions while supporting continued economic and industrial growth. The programme is intended to balance emissions reduction with the needs of key sectors fundamental to the national economy.

CCUS captures carbon dioxide emissions from industrial plants before release, with captured gas either utilised in chemical production or stored in underground geological formations. The government highlighted steel, cement, chemical manufacturing, power generation and oil refineries as primary beneficiaries because these sectors are hard to decarbonise through renewables alone. The policy seeks to make low carbon processes commercially viable in these industries.

Authorities plan to deploy the Rs 200 bn across research and development, pilot projects, carbon transport systems and storage infrastructure to foster domestic technological capability and reduce reliance on imported solutions. The initiative is described as a strategic response to evolving international trade measures, noting that the European Union carbon border mechanism is expected to impose additional charges on high carbon imports. By lowering product carbon intensity the government aims to preserve export competitiveness.

The package is projected to attract private investment through public private partnerships and to create skilled employment in carbon management and clean technology sectors. It forms part of a broader CCUS roadmap for 2025 and complements ongoing green infrastructure projects including high speed rail, renewable energy expansions and inland waterways development. Observers note that effective implementation and a clear regulatory framework for carbon markets and storage systems will be essential to realise the programme benefits.

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