India is set to introduce a green steel mission by the end of 2024, aiming to foster sustainable practices in steel production. Mr. Sandeep Poundrik, the Secretary of the Ministry of Steel, announced that this mission is inspired by the National Green Hydrogen Mission and is designed to motivate steelmakers to enhance their green steel output. This initiative comes as global pressure mounts to cut carbon emissions, especially with the European Union planning to implement a 25% carbon tax on steel and aluminum imports. A formal definition of green steel is expected by October, which will pave the way for the mission’s launch in December. Presently, around 10% to 20% of government procurement involves green steel, a figure likely to rise as production scales up.
The government is considering redirecting approximately US$ 357.4 million (Rs. 3,000 crore) in unutilized funds from the earlier PLI scheme for specialty steel to support green steel initiatives, subject to necessary approvals. With India’s growing steel consumption driven by rapid economic expansion, the government is also reevaluating the National Steel Policy 2017. Introduced in 2019, the Steel Scrap Policy emphasizes boosting green steel production capacity. Mr. Poundrik noted that the initial projection for steel capacity by 2030 was 300 million tonnes, but demand has exceeded those estimates. The Ministry of Steel is also addressing challenges in the steel scrap policy, particularly within the informal sector, which plays a crucial role in recycling steel scrap.
