According to sources familiar with the matter, this measure will be valid for eight years and is expected to mark a significant turning point in the country’s green steel transition.
Under the policy proposed by the Ministry of Steel, projects involving the procurement of iron and steel products exceeding ₹1 crore (approximately $120,000) in value would be subject to this requirement. In line with this, a draft cabinet note has reportedly been prepared by the Ministry of Steel.
According to leaked information, a mandatory minimum procurement of 20% is proposed for three-star green steel products, 5% for four-star products, and 1% for five-star products.
Government officials state that this regulation aims to increase the demand for green steel in public procurement, which accounts for approximately 22% of India’s total steel consumption. The move is also expected to contribute to the country’s efforts to reduce carbon emissions.
The Ministry of Steel had not responded to requests for comment on the matter by press time.
India aims to boost environmentally friendly steel production and accelerate the sector’s green transition in alignment with global sustainability regulations such as the European Union’s Carbon Border Adjustment Mechanism (CBAM).
With the green steel policy, public projects are expected to prioritize the use of low-carbon steel, and the new regulation is projected to have a positive impact on domestic producers.
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