Govt Plans Mandatory Public Procurement of Green Steel

05 Aug 2025 CW Team

The Ministry of Steel is working on modalities to mandate public procurement of green steel, as part of its efforts to decarbonise the industry. A Rs 150 billion Green Steel Mission is being formulated to support emission reduction and move towards net-zero targets.

The mission will include a PLI scheme, incentives for renewable energy use, and mandates for government agencies to buy green steel. Green steel is produced with significantly lower carbon emissions compared to conventional methods.

Speaking at the India Steel Conclave 2025, a senior official said procurement mandates are under consideration, though timelines are yet to be finalised.

He also criticised the European Union’s Carbon Border Adjustment Mechanism (CBAM), calling it contrary to the spirit of free trade. CBAM proposes levies on high-emission imports such as steel, aluminium and cement from countries including India.

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