India government said it is preparing the ‘Green Steel Mission’ with an estimated cost of Rs 15,000 crore to help the steel industry reduce carbon emissions and progress towards the Net Zero Target.
The mission includes a PLI Scheme for Green Steel, incentives for renewable energy use, and mandates for government agencies to buy Green Steel, enhancing environmental sustainability. The National Green Hydrogen Mission integrates the steel sector into its broader goal of green hydrogen production and decarbonisation of steel production.
A report on ‘Greening the Steel Sector in India,’ based on recommendations from 14 Task Forces, was released in September, followed by the December release of the Taxonomy for Green Steel, defining star ratings and providing a framework for low-emission steel.
India’s Steel Scrap Recycling Policy complements these efforts by promoting resource efficiency through increased availability of domestic scrap. The steel sector, as a stakeholder in the National Green Hydrogen Mission, has been allocated Rs 455 crore for pilot projects up to FY 2029-30, including initiatives for using hydrogen in Direct Reduced Iron (DRI) production and existing blast furnaces to reduce coal consumption.
A production-linked incentive (PLI) scheme was launched to attract investment, boost domestic ‘Specialty Steel’ manufacturing, and reduce imports. Participating companies have committed Rs 27,106 crore in investments, with Rs 17,581 crore already invested and 8,660 jobs generated by October 2024.
The government is also formulating a comprehensive global strategy to position India as a leader in the steel industry, focusing on raw materials, investments, technologies, and exports. A Working Group is developing a Steel Global Outlook Strategy, with a Strategy Paper under formulation after stakeholder consultations.
Standards for steel consumed in India are being incorporated into the Quality Control Order (QCO), ensuring uniform specifications and quality. Both domestic and foreign manufacturers are required to obtain BIS licenses for compliance, enforcing the supply of quality steel products.