The Centre is preparing to launch a mission on green steel by the end of 2024, as part of its efforts to drive more sustainable steel production in India, Sandeep Poundrik, secretary, ministry of steel, said on Thursday. The initiative, modelled on the National Green Hydrogen Mission, will incentivize industry players to scale up green steel output.
The move comes amid mounting pressure on countries to cut carbon footprint in manufacturing, notably a move by the European Union to impose a 25% ‘carbon tax’ on its imports of steel and aluminium among other goods.
Speaking at an event in the national capital, Poundrik shared that a formal definition for green steel is expected by the end of October, laying the groundwork for the mission’s potential rollout by December.
A key aspect of the mission will focus on increasing the share of green steel in government procurement. "Right now, say, 10% to 20% of steel which is procured by government entities may be in the green steel bracket. But it may increase in coming years as the green steel production increases," Poundrik said.
To support this shift, the government may consider reallocating unused funds from the earlier production-linked incentive (PLI) scheme for specialty steel. With approximately ₹3,000 crore left unutilized from the scheme’s original ₹6,322 crore outlay, these funds could be redirected to incentivize green steel production, subject to necessary approvals.