Centre Launches ₹5,000 Crore National Mission for Sustainable Steel to Cut Carbon Emissions

The Indian government is taking a decisive step towards sustainable industrial growth with a proposed ₹5,000 crore scheme aimed at promoting clean steel-making technologies, Steel Secretary Sandeep Poundrik said on Wednesday. Speaking to PTI during the ‘FT Live Energy Transition Summit India’ in New Delhi, he outlined plans for the National Mission for Sustainable Steel.

This ambitious initiative is designed to cover all steel producers across the country, with a special focus on secondary players. Around 75–80% of the funds will be earmarked for these smaller producers, who often face challenges in adopting cleaner technologies due to cost constraints. By offering financial incentives linked to emission reductions, the government intends to encourage the sector to innovate while keeping production sustainable.

“The scheme essentially rewards companies for lowering their carbon emissions compared to the previous year,” Mr. Poundrik explained. “While the emphasis is on improving technology, the key parameter we measure is decarbonisation.”

Steel, one of the hardest-to-abate industries, is a significant contributor to greenhouse gas emissions. According to official data, India’s steel sector accounts for 12% of the nation’s total emissions, with an emission intensity of 2.55 tonnes of CO2 per tonne of crude steel, higher than the global average of 1.9 tonnes. The new scheme aims to bridge this gap by promoting cleaner fuels, renewable energy usage, and alternative materials, aligning with India’s commitments under the Paris Agreement and its net-zero ambitions.

Officials expect the mission to become operational within the next few months, marking a major milestone in India’s push for low-carbon industrial growth. With rising domestic and global demand for steel, this initiative is poised to encourage sustainable production practices while ensuring competitiveness and environmental responsibility.

By combining policy incentives with industry participation, the ₹5,000 crore National Mission for Sustainable Steel is set to transform the Indian steel sector, making it cleaner, greener, and more future-ready.