+
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
Infrastructure Urban

Naidu Seeks Rs 563 Crore For AP Sports Infrastructure

Andhra Pradesh Chief Minister N Chandrababu Naidu has sought Rs 563 crore from the Centre to boost sports infrastructure in the state, including Rs 538 crore for stadium development and Rs 25 crore to host the Khelo India Martial Arts Games 2025. Naidu made the request during a meeting with Union Youth Services and Sports Minister Mansukh Mandaviya in New Delhi on Wednesday.The CM urged early completion of Khelo India infrastructure projects in Tirupati, Rajahmundry, Kakinada, and Narasaraopeta, and called for an international-standard badminton training centre and a national aquatic sports hu..

Next Story
Infrastructure Transport

Tough Bidding Norms Slow NHAI Road Project Awards

Stringent bidding rules imposed by the Ministry of Road Transport & Highways (MoRTH) have led to a slowdown in project awards by the National Highways Authority of India (NHAI), despite a robust Rs 3.5 trillion pipeline. According to an HDFC Securities report, the shift to more cautious developer models now favours firms with strong balance sheets, as tighter qualification norms limit aggressive bidders.The revised norms mandate additional performance security, targeting the exclusion of players that previously submitted low bids—often 25 to 40 per cent below NHAI cost estimates—raisin..

Next Story
Infrastructure Transport

Mumbai Gets Coastal Nod for Next Promenade Phase

As Mumbai prepares to open two major sections of its expansive seafront promenade this week, the city’s civic authority has secured a key coastal clearance to advance further construction. The Maharashtra Coastal Zone Management Authority (MCZMA) has approved the commencement of work on the segment between Haji Ali and Baroda Palace, with tendering expected soon after project cost assessments.The promenade, stretching 7.5 km in length and 20 metres wide, is being designed as a flagship open space for walkers, joggers, and cyclists. Two critical stretches—2.75 km from Tata Garden to Haji Al..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?