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India Backs Cleaner Steel With Rs 20,000 Crore CCUS Pilot as Modi Pitches Carbon Capture

New public money signals a pivot to cutting steel emissions to safeguard global competitiveness.

Overview

  • The Union Budget earmarks Rs 20,000 crore to pilot carbon capture, utilisation and storage across five sectors, including steel.
  • The Steel Ministry receives Rs 455 crore under the National Green Hydrogen Mission to run hydrogen-use pilots in steelmaking.
  • Prime Minister Narendra Modi frames carbon capture as central to the next phase of the country’s steel industry transition toward Net Zero 2070.
  • India’s green steel taxonomy sets a sub‑2.2 tCO2e per tonne finished‑steel threshold with a 3–5 star rating to identify lower‑emission products.
  • Analysts caution that EU CBAM and shifting US tariff terms raise near‑term risks, pressing for faster hydrogen and EAF deployment and scrap‑market reforms, including relief from the 18% GST on scrap.