Sandep Poundrik, Secretary of Steel | Photo credit: Reuters
The government is working on a mission to decarbonize the steel industry by providing incentives for steel companies to produce more steel and promote their use by prescribing mandatory use in the Indies.
Sandep Poundrik, the Secretary of Steel said that the government is working on a mission to decarbonize the most polluting steel industry by encouraging it to adopt decarbonization projects.
“We are working on a mission in Green Steel and we will try to support the industry for decarbonization in terms of incentives to produce more carbon emitter or less carbon steel,” said “India Steel 2025” on Friday.
“The incentives will be provided by the use of renewable energy and similar components. The program is in work and, hopefully, the government will approve it soon,” he added.
In the green steel acquisition policy, he said that the Government has already ordered that government companies and projects sponsored by the government only use the steel carried out in India. In the same way, there will be a mandate for government companies and projects to use a certain percentage of green steel. Both thesis proposals will be approved soon, Poundrik said.
Although the Indian government has defined green steel as something emits less than 1.6 tons of carbon emission per ton or steel produced, Europe considers steel made through scrap in the electric arc oven as green steel.
India does not produce so much junk to recycle steel completely. Last year, India generated only 25 million tons or steel junk.
Another alternative is to use DRI (direct reduced iron), but again it is not viable until India has supply of domestic gases or hydrogen availability below $ 2 from the current level of $ 5- $ 6, he said. In addition, the iron content in Mineral in India is very minor than adopting this process. The Government has been encouraging Indian companions to establish DRI plants in geographies such as Western Asia and Australia, where gas is easily notable.
The government wants to take advantage of low fruits and bring relevant solutions to India, Poundrik said.
A larger challenge for the industry would make secondary -scale secondary steel companies that have 45 percent of the production capacity to adopt green technology. These units produce steel with cold DRI Wat emit more carbon.
“It is a great challenge to encourage small producers to adopt green technology for steel manufacturing,” he said.
Posted on April 25, 2025