Indian Steel Ministry Seeks $1.7 Bn for Low-Carbon Steel Production
Steel

Indian Steel Ministry Seeks $1.7 Bn for Low-Carbon Steel Production

India’s Ministry of Steel has requested 150 billion rupees (approximately $1.74 billion) from the federal budget to incentivise mills to produce low-carbon steel, according to two government sources familiar with the matter.

As the world’s second-largest steel producer after China, India is actively working on a green steel policy aimed at reducing emissions in steel production. This initiative forms part of the country's broader efforts to meet its net-zero target by 2070, as outlined by Prime Minister Narendra Modi.

The steel ministry plans to use the funds to offer incentives that encourage emissions reduction, improve research and development, increase raw material efficiency, and incentivise banks to offer lower interest rates on renewable energy loans. These details were shared by the sources, who requested anonymity as the discussions are private.

The steel ministry did not respond to an email seeking comment.

Once the funds are allocated, the ministry will submit the proposal for the cabinet’s approval. In December, the government defined ‘green steel’ as steel produced with emissions lower than 2.2 metric tons of CO2 per tonne of finished steel.

The proposed incentives would remain in place until 2030, with green steel potentially being used in government projects.

India’s steel production generates 2.55 metric tons of carbon dioxide per tonne of crude steel, 38% higher than the global average of 1.85 tons, according to Global Energy Monitor.

India’s Ministry of Steel has requested 150 billion rupees (approximately $1.74 billion) from the federal budget to incentivise mills to produce low-carbon steel, according to two government sources familiar with the matter. As the world’s second-largest steel producer after China, India is actively working on a green steel policy aimed at reducing emissions in steel production. This initiative forms part of the country's broader efforts to meet its net-zero target by 2070, as outlined by Prime Minister Narendra Modi. The steel ministry plans to use the funds to offer incentives that encourage emissions reduction, improve research and development, increase raw material efficiency, and incentivise banks to offer lower interest rates on renewable energy loans. These details were shared by the sources, who requested anonymity as the discussions are private. The steel ministry did not respond to an email seeking comment. Once the funds are allocated, the ministry will submit the proposal for the cabinet’s approval. In December, the government defined ‘green steel’ as steel produced with emissions lower than 2.2 metric tons of CO2 per tonne of finished steel. The proposed incentives would remain in place until 2030, with green steel potentially being used in government projects. India’s steel production generates 2.55 metric tons of carbon dioxide per tonne of crude steel, 38% higher than the global average of 1.85 tons, according to Global Energy Monitor.

Next Story
Resources

Ajmera Realty launches tree drive on Environment Day

Ajmera Realty & Infra India marked World Environment Day with a large-scale tree plantation initiative—Plant-with-Purpose—across its projects in Mumbai and Bangalore. The drive was inaugurated at Ajmera Manhattan and Ajmera Greenfinity in Wadala, with senior company officials and residents in attendance. The campaign encourages residents to embrace eco-conscious, self-reliant lifestyles by growing useful plants and trees within their communities. Horticulture expert Devendra Bhekar guided residents on creating and maintaining green spaces. Ajmera Realty planted over 500 trees..

Next Story
Resources

Twaron®-reinforced tyre powers Brunel’s solar race car

Teijin Aramid’s Twaron® with circular content will debut in Bridgestone’s race tyres for the 2025 Bridgestone World Solar Challenge, supporting the Brunel Solar Team’s Nuna 13 car. This marks the first use of the recycled-content aramid in a high-performance race tyre. The Twaron®-reinforced belts help enhance durability, reduce rolling resistance, and maintain lightweight strength—critical for the 3,000-km solar race across Australia. Bridgestone combines this with ENLITENTM tech and other recycled inputs to maximise environmental and performance outcomes. Teijin Aramid, a..

Next Story
Building Material

Kamdhenu Paints launches new wood coating range

Kamdhenu Paints has launched a comprehensive premium wood coating range designed for both interior and exterior applications. The collection includes high-performance solutions like Kamwood 2K PU for a rich matt or high-gloss finish, Kamwood 1K PU for clarity and stain protection, and the Kamwood Melamyne system for a smooth, durable finish. Also featured are Kamwood Wood Stains, which enhance wood grains with vibrant colour, and NC Sanding Sealer for high-build grain filling. The range is supported by Kamwood Thinners for ease of application and optimal finish. Saurabh Agarwal, MD, ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?