India is planning a national mission worth $567 million for green steel

Under the mission, financial support will be provided to both large and small steel producers. The package will include concessional loans, risk guarantees, and other financial instruments. The primary focus will be on secondary producers, who account for nearly half of India’s steel production; however, primary producers using blast furnaces will also benefit from the support.

Secondary steel producers, who use scrap and sponge iron, mainly produce through electric arc or induction furnaces. These characteristics place them at the center of India’s decarbonization plans. The government aims to encourage the use of better raw materials, alternative fuels, and renewable energy in production.

Under the 2017 National Steel Policy, India aims to reduce carbon emissions per tonne of crude steel produced through electric arc furnace technology to 2.6–2.7 tonnes by 2030.