National Mission for Sustainable Steel aims to push greener technologies in a coal-based industry

The government is preparing a Rs 5,000 crore scheme to encourage the adoption of clean steel-making technologies as part of efforts to reduce carbon emissions in one of India’s most energy-intensive industries, said Steel Secretary Sandeep Poundrik on Wednesday.

The proposal, described as a ‘National Mission for Sustainable Steel’, is under active consideration and seeks to accelerate the transition towards greener processes in an industry dominated by coal-based production routes.

India is the world’s second-largest producer of crude steel, with output reaching 143.6 million tonne in 2024, according to the World Steel Association. The sector accounts for nearly 12 per cent of the country’s carbon dioxide emissions, making it one of the hardest to decarbonise.

Despite being a key driver of infrastructure and industrial growth, India’s per capita steel consumption remains relatively low at 86.7 kg in FY24, well below the global average of 233 kg, as per the Economic Survey 2024-25. With demand expected to rise sharply in the coming decades, pressure is mounting to align production with environmental commitments.

The government has pledged to achieve net-zero emissions by 2070, with the steel sector tasked with cutting emission intensity by 30 per cent by 2030. This requires a shift away from the traditional blast furnace-basic oxygen furnace (BF-BOF) route, which emits about 2.3 tonne of carbon dioxide per tonne of steel produced. By contrast, the electric arc furnace (EAF) route emits only around 0.4 tonne of carbon dioxide per tonne.