Government Plans ₹5,000 Crore Scheme to Promote Clean Steel Technologies

New Delhi, September 17: The Indian government has announced that it is preparing a ₹5,000 crore scheme to ensure reduced carbon emissions in the steel sector. Under the scheme, the government will adopt clean technologies and alternative materials to ensure carbon emissions are reduced as much as possible. The announcement was made today by Steel Secretary Sandeep Poundrik.

Speaking at the ‘FT Live Energy Transition Summit India’ in the national capital, Poundrik confirmed that the proposal is under consideration for a National Mission for Sustainable Steel. The scheme is expected to be operational in the coming months.

Focus on Secondary Steel Players

As per the announcement, the scheme will majorly focus on domestic steel manufacturers. The scheme has earmarked nearly 75-80% of the funds under the scheme for secondary manufacturers. These companies are the ones that mainly operate on a smaller scale than other integrated steel companies.

Incentive-Based Emission Reductions

Explaining the framework, Poundrik said: “Basically, this scheme is that you will get incentives depending on how much you reduce the emission.. What we are saying is to improve the technologies, but the output parameter we are measuring is decarbonisation,” he noted.

Steel Sector’s Carbon Challenge

The steel industry is one of the biggest carbon emitters worldwide. It has been long under pressure for changing its processes to ensure reduced carbon emissions. The proposed scheme will help the industry take positive steps towards being carbon neutral and support the environment in the long run.

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