Government contemplates rewarding steel companies, which prioritize energy-efficient technologies and sustainable practices with concessional finance and long-term loans.
Feb 21, 2024
In order to create a conducive environment for the steel sector to embrace eco-friendly practices and accelerate green transition in steel production, the government is contemplating a slew of incentives for the industry, including concessional finance and long-term loans.
The proposed measures aim at supporting and rewarding the steel companies, which prioritize environmentally-conscious processes, energy-efficient technologies and overall sustainability, thus contributing to the nation’s commitment to a cleaner and greener industrial landscape.
The range of incentives fall in line with the global efforts to reduce carbon footprint, as well as the government’s endeavor to address the challenges posed by carbon taxation, such as the European Commission’s Carbon Border Adjustment Mechanism (CBAM).
The government further seeks to achieve a balanced industrial growth with environmental responsibility, thus promoting sustainable construction materials.
The Ministry of Steel had constituted 13 Task Forces in August last year with the engagement of industry, academia, think tanks, S&T bodies, different Ministries and other stakeholders to discuss, deliberate and recommend ways for decarbonisation of the steel sector.
The recommendations from these task forces will soon be consolidated into an integrated document for stakeholder consultations. The government’s initiative will ensure a level-playing field for the domestic steel producers, with a focus on achieving a consensus on the definition of ‘green steel.’
India has emerged as the second largest producer of crude steel in the world. The country exported 6.72 MT finished steel and imported 6.02 MT in 2022-23.
The government is focussing to achieve 300 million tonne annual steel production by 2030.
