Govt Plans ₹5,000-Crore Scheme to Help Steel Industry Adopt Green Technologies

The Central government is planning a ₹5,000-crore scheme to help the steel industry adopt green technologies and reduce carbon emissions. The move is part of the government’s efforts to make steel production cleaner and support the industry’s transition to low-carbon manufacturing.

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The scheme is expected to provide financial support to steel manufacturers, especially smaller companies, to invest in cleaner production technologies that are currently expensive.

Financial Support for Cleaner Steel Production

Under the proposed scheme, the government may support the adoption of technologies such as green hydrogen-based steelmaking, carbon capture, energy-efficient equipment, and the use of renewable energy.

Officials are also considering measures such as concessional loans and funding support to reduce the cost of these investments.

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The scheme is expected to encourage companies to modernise their plants and lower carbon emissions.

Why the Scheme Matters

India is the world’s second-largest steel producer, and the sector is one of the country’s biggest industrial sources of carbon emissions. Most steel plants still depend on coal-based production, making it difficult to reduce emissions without major investments.

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At the same time, several global markets are placing greater importance on low-carbon products, making cleaner steel production increasingly important for exporters.

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Part of India’s Climate Goals

The proposed scheme is expected to support India’s target of achieving net-zero emissions by 2070. It will also add to the steps already taken by the Ministry of Steel, including pilot projects under the National Green Hydrogen Mission and work on a Green Steel Roadmap.

Industry representatives have said that financial support from the government will help companies adopt new technologies faster.

Scheme Likely After Consultations

The government is expected to hold discussions with industry stakeholders before finalising the scheme.

Once approved, the ₹5,000-crore programme is expected to help steel companies reduce emissions while improving the long-term competitiveness of the sector.

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