The Indian government is close to approving a corpus of around $570 million to offer fiscal incentives for production of sustainable green steel in the country, government sources said on Monday, September 8.
The fiscal incentives could be in various forms as concessional loans from financial institutions, risk guarantees and special funding instruments, with the target being secondary steel producers which account for half of domestic finished steel output.
However, blast furnace operators would also be eligible for incentives from the corpus subject to some specific conditions, the sources added.
The government aims to promote the use of better raw materials, alternative fuels and renewable energy in steel production. Under the National Steel Policy 2017, India has already set a target of cutting emissions to 2.6-2.7 mt of carbon dioxide per mt of crude steel through electric arc furnace technology by 2030.
A recent report by Ernst-Young-Parthenon has projected Indian green steel production of around 4.49 million mt by 2030 driven by the construction, infrastructure and automobile sectors.