What is being done to decarbonise hard-to-abate sectors like cement, heavy engineering and capital goods?
Capital-goods equipment used in the manufacturing of boilers, electrolyser components, turbines and waste-heat-recovery units contribute a negligible share of direct carbon emissions. The government’s recent focus highlighted by the operationalisation of the Carbon Credit Trading Scheme [CCTS] administered by BEE [Bureau of Energy Efficiency] targets nine energy-intensive sectors like iron and steel, cement and fertilisers, for mandatory emission-intensity reduction.
Capital goods is not listed among these nine primary compliance sectors, indicating that its direct emissions intensity is comparatively lower. Regarding decarbonisation in sectors like cement, Cement Corporation of India has taken steps such as:
Energy efficiency and process optimisation through modernisation of kilns, deployment of waste-heat recovery systems and increased use of green energy
Clinker reduction, including higher use of blended cement with alternative raw materials and industrial by-products
Renewable energy and clean-fuel substitution, with a gradual shift towards solar, wind, biomass and refuse-derived fuels
Medium- to long-term deployment of advanced solutions, such as carbon capture, once these tech-nologies attain commercial viability.
How are manufacturers being prepared for carbon-related trade measures without compromising growth?
From a PSU [public sector underta-king] perspective, the emphasis is on technology upgradation, access to financial and policy support, and long-term solutions like carbon capture and alternative fuels to address process emissions while maintaining industrial competitiveness.
How do you plan to encourage adoption of low-carbon manufacturing technologies?
The ministry’s vision is to ensure that machinery manufactured in India is energy-efficient, and that manufacturing facilities adopt low-carbon practices, alongside awareness-building among manufacturers.
Energy costs account for approximately 35–45% of the variable costs in cement manufacturing, comprising electricity, coal and oil. Renewable energy derived from sources such as sunlight, wind, water, geothermal heat and biomass offers a cleaner option with minimal greenhouse-gas emissions, supporting climate action and energy security.
While the Ministry of New and Renewable Energy is the nodal agency, schemes like providing financial incentives for domestic manufacturing of electrolysers and for end-use of green hydrogen in sectors such as refineries and steel directly support low-carbon pathways.
3 February 2026
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"The idea is to build demand for low-carbon products without imposing abrupt cost burdens"
How do you plan to support the indigenisation of clean-manufacturing technologies to cut dependence on imports?
The ministry administers the production-linked incentive [PLI] scheme for advanced chemistry cell [ACC] battery storage. The scheme is technology agnostic and ensures that superior technologies receive higher incentives. It is designed to attract substantial investments and promote R&D. Besides the PLI ACC applicants, at least 10 others have announced a cumulative capacity of about 178GWh over the next five years.
Further, the PLI ACC scheme has raised demand for components like cathode- and anode-active materials, foils and recyclers. Indian manufacturers are capitalising on the same by setting up component manufacturing units which will help in contributing to robust circular economy for cells in India.
Are there any plans to create demand for low-carbon products?
We work in coordination with stakeholders to enable standards, certifications and disclosures that distinguish low-carbon products in the market. These mechanisms enhance buyer confidence and gradually build demand without imposing abrupt cost burdens, allowing decarbonisation to proceed alongside infrastructure affordability and public sector priorities.
What is being done to promote low-carbon cement and alternative materials?
Even the best-performing plants globally emit 550–600kg CO₂ per tonne of cement. While India currently compares favourably with global benchmarks, future decarbonisation will depend on innovation, including advanced-kiln technologies, alternative fuels, low-clinker and novel binders, and eventually carbon capture, utilisation and storage.
Key measures undertaken by the Cement Corporation of India include:
Installation of pulse jet bag houses at Rajban and Tandur units
Diversion of waste hot gases from preheaters; installation of dry fly-ash feeding systems at Tandur
Commissioning of solar power plants under the Resco [renewable energy service company] model
What is the outlook on domestic manufacturing of energy-efficient heavy-engineering equipment?
It is a strategic priority for strength-ening industrial competitiveness, reducing import dependence and supporting decarbonisation.
From a PSU perspective, early adoption of indigenous technologies through pilot projects helps reduce risks, improve lifecycle costs and generate sustained demand. The aim is to position India as a global hub for low-carbon industrial equipment.
Further, we are the nodal ministry for the automobile sector, including electric vehicles [EVs], which contribute to the reduction of emissions by lowering dependence on fossil fuels.
The impact is measurable. The sale of 22.31 lakh EVs till date under PM E-DRIVE may have already resulted in a reduction of around 9.39 lakh tonnes of CO₂ emissions. This is bolstered through targeted incentives for e-trucks and e-buses.
Overall, these initiatives are designed to support India’s greenhouse-gas-mitigation commitments and facilitate a transition towards a low-emission-intensive economy.
