Centre Plans ₹5,000 Crore Scheme to Accelerate Green Technologies in India’s Steel Sector

India is preparing to take another major step towards decarbonising its steel industry, with the Central Government planning a ₹5,000 crore incentive scheme to encourage the adoption of green technologies across the sector.

According to government officials, the scheme is expected to be introduced within the next three months and will support steel manufacturers in investing in cleaner production processes that significantly reduce carbon emissions. The initiative is part of India’s broader strategy to achieve its climate commitments while ensuring the long-term competitiveness of the domestic steel industry.

The steel sector is among the country’s largest industrial emitters of greenhouse gases due to its dependence on coal-based production methods. As global markets increasingly prioritise low-carbon manufacturing, Indian producers are under growing pressure to modernise their facilities and adopt sustainable technologies.

The proposed financial support is expected to help companies deploy energy-efficient equipment, cleaner fuel alternatives, waste heat recovery systems and other advanced technologies that reduce the environmental impact of steel production. Industry experts believe the programme could particularly benefit secondary steel manufacturers, who often face financial constraints in adopting modern production systems.

The government has been actively promoting green manufacturing across several industries, including cement, steel and construction materials, to balance economic growth with environmental responsibility. The upcoming scheme is expected to complement existing initiatives aimed at improving industrial energy efficiency and lowering emissions.

India is the world’s second-largest steel producer, and demand is projected to continue growing with increased investments in infrastructure, housing, railways and manufacturing. As production expands, reducing the sector’s carbon footprint has become a national priority.

Industry stakeholders have welcomed the proposed initiative, stating that financial incentives will accelerate the adoption of cleaner technologies while enhancing the global competitiveness of Indian steel manufacturers. Once implemented, the scheme is expected to encourage greater private investment, support innovation and strengthen India’s transition towards a greener and more sustainable industrial ecosystem.