The Indian government is developing a policy to mandate the use of green steel in public procurement, marking a major step in its efforts to decarbonize the steel sector and meet its net-zero goals.
Speaking on Monday, Ashwini Kumar, Economic Adviser at the Ministry of Steel, stated that green steel will need government-backed support to compete with conventional carbon-intensive steel. "There is a need to mandate some kind of public procurement of green steel for government-funded projects. We are working on this," he said.
While there is no official timeline yet, Kumar acknowledged that implementing such a policy is complex. "It is a tricky business. I don't know when we will see green steel public procurement coming into force but still, methods are being worked out," he added.
As part of this initiative, the Ministry of Steel is formulating a 'Green Steel Mission' with a proposed funding corpus of $1.73 billion (approx. ₹14,400 crore). The mission aims to support the transition of India’s steel industry towards low-carbon production methods, contributing to the country's broader net-zero emission targets.
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