India’s ministry of steel is close to finalizing a $529 million fiscal package to promote programs aimed at reducing carbon emissions in the steel sector and likely to be unveiled within three months, government sources said on Tuesday, June 30.
The fiscal package titled “National Strategy for Sustainable Secondary Steel’ will be forwarded to India’s cabinet of ministers for final approval before implementation, the sources said.
The initiative will apply to all steelmakers across the country, though a substantial portion of the funds will be directed towards secondary steel producers.
It focuses on encouraging, through fiscal incentives, the adoption of clean technologies and alternative materials in various steelmaking processes to lower the industry’s carbon footprint.
The steel sector is among the highest carbon-emitting industries in the country, accounting for 10-12 percent of India’s total greenhouse gas emissions.
Official data show that India’s steel industry currently has an emission intensity of 2.55 mt of carbon dioxide per mt of crude steel - notably higher than the global average of around 1.9 mt of carbon dioxide per mt of steel.
