CCUS Outlay of ₹20,000 crore Proposed for Cement, Steel and Power Companies 

Union Finance Minister Nirmala Sitharaman, while presenting the Union Budget today, proposed a ₹20,000 crore allocation over five years to support the development of Carbon Capture, Utilisation and Storage (CCUS) technologies. 

CCUS Push Announced in Budget 2026 

Announcing the proposal in her Budget speech, the Finance Minister said the move is aimed at reducing greenhouse gas emissions in some of the most carbon-intensive sectors, including cement, steel, power, refineries, and chemicals. 

She also referred to the CCUS roadmap launched in December 2025, which identified Carbon Capture, Utilisation and Storage as a key priority in India’s decarbonisation efforts. Stressing the need for wider adoption, she said CCUS technologies must be implemented at scale across high-emission industries. 

To support this, the government has proposed an outlay of ₹20,000 crore over the next five years. The CCUS R&D Roadmap has been developed by the Department of Science and Technology (DST) after more than seven years of research, with inputs from domain experts and a High-Level Task Force. 

Target Sectors of the Proposal 

The roadmap provides the right kind of guidance required by these industries on their thematic priorities. Besides, it can also help them find new ways to accelerate their funding in CCUS development. 

The proposal also enables industries to optimise existing technologies while preparing for future scientific breakthroughs. Beyond technology, it seeks to strengthen critical factors such as workforce skills, safety standards, and regulatory compliance. 

Importance of the CCUS Initiative 

The proposal is timely as the world faces increasingly severe climate challenges. Recognising this, the government is providing a clear pathway to curb greenhouse gas emissions. 

This initiative ensures that industrial growth progresses responsibly, with measures in place to monitor environmental impact and encourage sustainable practices. It also aligns with the government’s long-term commitment to achieving net-zero emissions by 2070, making CCUS deployment a strategic priority for a greener future. 

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