CBAM May Raise India's Steel Sector Tax by 20-35%, Affecting 0.5% of GDP

08 Aug 2024 CW Team

Kumar asserted that India must prioritize decarbonisation alongside its developmental goals and advocated for the establishment of a Carbon Credit Trading System (CCTS) to improve decarbonisation efforts and production systems.

In his opening remarks, Sabyasachi Bandyopadhyay, Co-Chairman of the ASSOCHAM National Council on Iron & Steel, highlighted the economic implications of CBAM, which could result in additional taxes of 20-35 per cent, potentially affecting 0.5 per cent of India's GDP. He stressed the need for a strategic approach to adapt to these changes.

Devasish Mishra, Executive Vice President at JSW Steel, outlined the challenges of complying with new EU regulations designed to prevent carbon leakages and maintain industrial competitiveness. He remarked that the steel and aluminium industries would need to reassess their production processes to meet stringent environmental standards.

Manish Mishra of Tata Steel discussed the global impact of CBAM, focusing on its integration into business strategies and the difficulties of adhering to new carbon pricing mechanisms.

Dhiraj Nayyar from Vedanta emphasised the importance of strengthening India's manufacturing sector to reach significant economic milestones, including becoming the world's third-largest economy. He observed that a carbon credit trading scheme would help streamline carbon taxation and improve governance.

The conference also featured the release of a report prepared by ASSOCHAM and ICRA, which examined the increased exposure of the steel and aluminium sectors under CBAM and highlighted the urgent need for industry adaptation.

During the Conference on Carbon Border Adjustment Mechanism (CBAM) organized by ASSOCHAM, Ashwini Kumar, Economic Advisor at the Ministry of Steel, revealed that the Indian steel industry emits 2.5 tonne of CO2 per tonne of crude steel, attributed to limited gas resources and other factors. Kumar discussed the challenges of decarbonisation in light of India's developmental needs and emphasized the need for adopting green technologies despite their high costs and stringent intellectual property regimes. Kumar asserted that India must prioritize decarbonisation alongside its developmental goals and advocated for the establishment of a Carbon Credit Trading System (CCTS) to improve decarbonisation efforts and production systems. In his opening remarks, Sabyasachi Bandyopadhyay, Co-Chairman of the ASSOCHAM National Council on Iron & Steel, highlighted the economic implications of CBAM, which could result in additional taxes of 20-35 per cent, potentially affecting 0.5 per cent of India's GDP. He stressed the need for a strategic approach to adapt to these changes. Devasish Mishra, Executive Vice President at JSW Steel, outlined the challenges of complying with new EU regulations designed to prevent carbon leakages and maintain industrial competitiveness. He remarked that the steel and aluminium industries would need to reassess their production processes to meet stringent environmental standards. Manish Mishra of Tata Steel discussed the global impact of CBAM, focusing on its integration into business strategies and the difficulties of adhering to new carbon pricing mechanisms. Dhiraj Nayyar from Vedanta emphasised the importance of strengthening India's manufacturing sector to reach significant economic milestones, including becoming the world's third-largest economy. He observed that a carbon credit trading scheme would help streamline carbon taxation and improve governance. The conference also featured the release of a report prepared by ASSOCHAM and ICRA, which examined the increased exposure of the steel and aluminium sectors under CBAM and highlighted the urgent need for industry adaptation.

Infrastructure Transport

06 Feb 2026

Lucknow Metro East-West Corridor Consultancy Contract Awarded

The Uttar Pradesh Metro Rail Corporation has awarded the first construction-related consultancy contract for the Lucknow Metro East West Corridor to a joint venture of AYESA Ingenieria Arquitectura SAU and AYESA India Pvt Ltd. The firm was declared the lowest bidder for the Detailed Design Consultant contract for Lucknow Metro Line-2 under Phase 1B and the contract was recommended following the financial bid. The contract is valued at Rs 159.0 million (mn), covering design services for the corridor. Lucknow Metro Line-2 envisages the construction of an 11.165 kilometre corridor connecting Cha..

Infrastructure Urban

06 Feb 2026

Div Com Kashmir Urges Fast Tracking Of Jhelum Water Transport Project

The Divisional Commissioner of Kashmir has called for the fast-tracking of the Jhelum water transport project, urging district administrations and relevant agencies to accelerate planning and clearances. In a meeting convened at the divisional headquarters, the commissioner instructed officials from irrigation, public health engineering and municipal departments to prioritise the project and coordinate survey and design work. The directive emphasised removal of administrative bottlenecks and close monitoring to ensure timely mobilisation of resources and contractors. Officials were told to in..

Infrastructure Urban

06 Feb 2026

Interarch Reports Strong Q3 And Nine Month Results

Interarch Building Solutions Limited reported unaudited results for the third quarter and nine months ended 31 December 2025, recording strong revenue growth driven by execution and a robust order book. Net revenue for the third quarter rose by 43.7 per cent to Rs 5.225 billion (bn), compared with Rs 3.636 bn a year earlier, reflecting heightened demand in pre-engineered building projects. The company’s total order book as at 31 January 2026 stood at Rs 16.85 bn, supporting near-term visibility. EBITDA excluding other income for the quarter increased by 43.2 per cent to Rs 503 million (mn),..