India’s Ministry of Steel will channel 80 percent of the proposed $570 million fiscal incentive scheme for green steel production to secondary mills, a senior government official confirmed on Thursday, September 18.
The move aims to accelerate decarbonization in the steel sector and boost the adoption of low-emission steel technologies.
Support for secondary steel sector
According to steel ministry secretary Sandeep Poundrik, the scheme is being designed to support the secondary steel sector, which consists of around 2,200 units contributing 47 percent of India’s total steel output. Despite their significant role, these mills often lack the financial resources to invest in clean and green steel technologies.
“We are launching a scheme to help the steel industry, especially the secondary sector, to produce low-emission steel. Up to 80 percent of the funds will be directed toward these units. Larger producers are expected to mobilize their own resources,” Poundrik said.
Performance-based incentives
The official added that the scheme has received internal approvals and will be rolled out within the next few months. Incentives will follow a performance-based model, directly linked to the reduction of carbon emissions achieved compared with the previous year.
The initiative is part of India’s broader efforts to decarbonize its steel industry, one of the country’s largest contributors to carbon emissions. By focusing on secondary mills, the government intends to drive large-scale adoption of green steel production methods and support the transition toward sustainable industrial growth.