Green Steel Mandate Could Unlock 16 Million Tonnes Supply by FY30: CII

India could unlock a major supply of certified green steel by the end of the decade if public procurement policies begin mandating its use in infrastructure projects. A new study by the Confederation of Indian Industry indicates that introducing a 26 percent green steel requirement in government procurement could generate up to 16 million tonnes of certified low carbon steel supply by FY30. The move could also create the country’s first large scale assured market for greener steel products.

Public procurement in India accounts for nearly Rs 45 lakh crore to Rs 50 lakh crore every year and infrastructure related projects alone consume more than 31 million tonnes of steel. These projects also contribute significantly to industrial carbon emissions. According to the report even a modest mandate could accelerate decarbonisation across the steel sector while strengthening the global competitiveness of Indian producers. It would also encourage companies to invest in cleaner production technologies including hydrogen based processes energy efficient furnaces and higher scrap utilisation.

India’s steel producers have already begun preparing for a transition toward greener manufacturing. The study surveyed major steelmakers representing about 88 million tonnes of crude steel capacity and found that most are ready to supply certified green steel at scale if clear policy signals are provided. Industry players have suggested supportive mechanisms such as price premiums GST concessions and carbon credit incentives to offset the initial cost of cleaner technologies during the early years of implementation.

The report notes that the government’s rising infrastructure investment creates a powerful opportunity to drive this shift. With annual capital expenditure exceeding Rs 11 lakh crore and large scale programmes in transport urban infrastructure and energy underway public procurement can shape market demand quickly. Analysts estimate that adopting certified green steel would increase project costs only marginally between 0.2 percent and 1.2 percent. However the environmental gains could be substantial with potential emission reductions equivalent to removing millions of cars from the road every year. Experts believe a clear policy roadmap and coordinated action across ministries will be crucial to turning India’s green steel ambition into reality this decade ahead.