Govt plans `5,000 crore scheme to promote decarbonisation in steel industry: Poundrik

The government is working on a Rs 5,000 crore scheme to promote adoption of clean steel-making technologies, thereby reducing carbon emissions, Steel Secretary Sandeep Poundrik said on Wednesday.

 The senior ministry official made the remarks while speaking to PTI on the sidelines of the 'FT Live Energy Transition Summit India' in the national capital.

"The proposal is under consideration for a National Mission for Sustainable Steel. It is a Rs 5,000 crore scheme," he said.

The scheme will cover all steel makers in the country, with 75-80 per cent of the fund earmarked for secondary players, Poundrik said.

It aims to promote lower carbon emissions in steel production by encouraging the use of clean technologies and alternative materials, he added.

Meanwhile, The EU's Carbon Border Adjustment Mechanism (CBAM) will impact Indian exports to the region, and the industry has to take measures to address this "concern", Poundrik said on Wednesday. The CBAM is designed to impose a carbon price on imports from countries with lower environmental regulations, initially covering iron and steel, aluminium, cement, fertilisers, electricity and hydrogen. This is expected to be fully in place in 2026. The limits of carbon emission, which are proposed in the CBAM, will definitely affect the exports, the senior ministry official said.