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.

Redefine the future of urban mobility! Join us at the Metro Rail Conference 2025 to explore groundbreaking ideas and insights. 👉 Register today!

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 Transport

Kasarwadavli-Gaimukh Metro 4A Completion Delayed to April 2025

The completion of the Kasarwadavli-Gaimukh Metro 4A corridor has been delayed to April 2025, surpassing the original deadline of March 2024, according to a reply from the Mumbai Metropolitan Region Development Authority (MMRDA) to an RTI query. The delay has caused a cost escalation of Rs 630 million, raising the project’s total cost from Rs 4.4 billion to Rs 5.03 billion. Mumbai-based activist Anil Galgali, who filed the RTI, expressed concerns over the prolonged construction timeline. “I have witnessed significant traffic congestion on Ghodbunder Road due to the ongoing Metro 4A work. Th..

Next Story
Infrastructure Transport

Feeder Service To Connect Vizhinjam Terminal With Haldia

Mediterranean Shipping Company S.A, the world’s biggest container shipping line, has started a feeder service linking Haldia Dock Complex of state-owned Syama Prasad Mookerjee Port Authority with the newly opened container transshipment terminal run by Adani Ports and Special Economic Zone Ltd at Vizhinjam in Kerala. The containers originating and bound for Kolkata/Haldia trade were earlier transshipped through Colombo port, a regional transshipment hub. The service to be run every ten days is the first feeder service to be launched between an Indian gateway port and the Vizhinjam ..

Next Story
Infrastructure Urban

Environmental Clearance Granted for Tidel Parks in Madurai and Trichy

The Tamil Nadu State Environment Impact Assessment Authority (SEIAA) has granted environmental clearance for the construction of Tidel parks in Madurai and Trichy, paving the way for these landmark projects. Tenders have been issued, and TIDEL Park Limited officials announced that foundation stones will be laid within a month. The Madurai Tidel Park, set to rise near the Mattuthavani bus stand on a 9.97-acre site, will feature a built-up area of 567,000 square feet. The Rs 2.89 billion project will include a ground floor and 12 additional floors with state-of-the-art facilities, including plu..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000