By December, India will implement a national green steel initiative.

Indian government intends to instigate a national green steel mission by December of this year.

In order to encourage sustainable production, it is anticipated that the definition of such products will be established in October. According to Sandeep Poundrick, secretary of the Ministry of Steel, the initiative is based on the National Green Hydrogen Mission.

The decision is made in response to the increasing pressure on countries to decrease carbon emissions in manufacturing, which includes the implementation of the European CBAM.

The mission will prioritize the expansion of the proportion of green steel in public procurement.

Currently, approximately 10-20% of the steel purchased by government agencies can be classified as green, according to Poundrick. However, this percentage may rise in the years ahead as the production of these steel products expands.

The government may contemplate reallocating unused funds from the previous production-linked incentive (PLI) scheme for specialty steel in order to facilitate this transition. We are discussing a sum of 30 billion Indian rupees ($356.8 million). A portion of the funds may be redirected to encourage the production of green steel, provided that the requisite approvals are obtained.

India’s national steel policy from 2017 and the waste policy introduced in 2019 are currently under review by the government, as the country’s steel consumption continues to rise rapidly as a result of rapid economic growth.

As previously reported by the GMK Center, the decarbonization of existing facilities in India’s steel industry will necessitate an investment of approximately $283 billion. This is documented in a report issued by the Ministry of Steel of the nation. Increasing the integration of renewable energy sources in the steel sector should be the primary objective of the plans. Furthermore, the government may reduce tariffs on green steel production to promote its adoption, in addition to mandating that luxury car manufacturers utilize more environmentally friendly raw materials.