Govt Plans ₹5,000 Crore Scheme in 3 Months to Promote Green Technologies in Steel Sector

The government is planning to introduce a scheme to promote the adoption of clean technologies in steelmaking processes with an outlay of ₹5,000 crore, according to an official.

The move is aimed at reducing carbon emissions from the domestic steel industry. The scheme named National Strategy for Sustainable Secondary Steel is expected to be launched in the next three months, a senior government official told PTI.

"The scheme may go for approval of the union cabinet," another official in the know of the development said.

The scheme will cover all steelmakers in the country. However, a major share of the funds will be earmarked for secondary players.

The National Strategy for Sustainable Secondary Steel aims to promote the adoption of clean technologies and alternative materials across various steelmaking processes to reduce carbon emissions from the domestic steel industry.

The move assumes significance as India is a signatory to the Paris Agreement and aims to become a net-zero country.

Steel sector is among the largest carbon-emitting industries. India's steel industry accounts for 10-12% of country's greenhouse gas emissions with an emission intensity of 2.55 tonnes CO2 per tonne of crude steel, higher than the global average of around 1.9 tonnes Co2 emissions, according to official data.