New Delhi: Green steel scheme is set to become one of India’s biggest clean manufacturing initiatives. The Central Government is preparing to launch a ₹5,000 crore green steel scheme within the next three months to help steel companies adopt cleaner technologies and reduce carbon emissions. The proposal, called the National strategy for sustainable secondary steel, is expected to be sent to the union cabinet for approval soon.
What Is the ₹5,000 Crore Green Steel Scheme
The new scheme aims to support steel manufacturers in adopting modern and environmentally friendly production methods.
According to government officials, the initiative will encourage the use of clean technologies and alternative materials to reduce greenhouse gas emissions from India’s steel sector.
Why Is this Scheme Important
India’s steel industry is one of the country’s largest sources of industrial pollution. Official estimates show that the sector contributes around 10–12% of India’s greenhouse gas emissions. The average emission intensity is about 2.55 tonnes of CO₂ per tonne of crude steel, which is higher than the global average.
Reducing these emissions is important for India’s long-term climate goals and commitment to achieve net-zero emissions by 2070.
Who Will Benefit
The scheme will be available for steel manufacturers across the country. However, a large share of the financial support will go to secondary steel producers, which account for nearly half of India’s total steel production and often require financial assistance to adopt cleaner technologies.
Cabinet Approval Expected Soon
Officials have confirmed that the proposal is likely to be placed before the Union Cabinet in the coming months. If approved, the scheme is expected to be launched within three months and will become a major step in making India’s steel industry cleaner and more sustainable.
How the Green Steel Scheme Supports India’s Green Goals
The Green Steel Scheme complements the Ministry of Steel’s ongoing efforts, including pilot projects under the National Green Hydrogen Mission, which promotes hydrogen-based steel production.
The government is also encouraging the use of renewable energy, carbon reduction technologies, and resource-efficient manufacturing to make India’s steel industry globally competitive.
