Government Of India Plans Rs 5,000-Crore Mission To Promote Green Steel Production

(MENAFN- KNN India) New Delhi, Sep 17 (KNN) The Government of India is preparing to launch a Rs 5,000-crore national mission aimed at helping the steel industry adopt cleaner and more sustainable production methods.

The initiative seeks to cut carbon emissions from both primary (blast furnace-based) and secondary (electric arc and induction furnace) steelmaking.

According to N. N. Rao, Ministry of Steel Secretary, secondary producers-who rely on scrap and sponge iron-will be a major focus of the plan as they contribute nearly half of India's steel output.

The mission is expected to support these producers in transitioning to low-carbon technologies and increasing energy efficiency.

The scheme will offer a mix of financial tools, including concessional loans, risk guarantees, and other incentives to push the sector towards green technologies.

It may also promote the use of renewable energy, improved raw materials, and better operational practices to cut emissions.

This new mission is likely to be launched in the next financial year after necessary approvals. It forms part of a broader upcoming Green Steel Mission, which could include production-linked incentives (PLI), rules to encourage government procurement of green steel, and measures to boost demand for low-carbon steel products.

The government's efforts align with targets under the National Steel Policy 2017, which aims to reduce carbon dioxide emissions to around 2.6–2.7 tonnes per tonne of crude steel by 2030 through greater use of electric arc furnace methods.

(KNN Bureau)

MENAFN17092025000155011030ID1110075611