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The government is planning to launch a ₹5,000 crore scheme over the next three months

ICICIdirect Research 30 Jun 2026 DISCLAIMER

News: As per media sources, the government is planning to launch a ₹5,000 crore scheme over the next three months to promote the adoption of clean technologies in the domestic steel industry. The significant portion of the incentives expected to be allocated to secondary steel producers.

View: The proposed scheme is sentimentally positive for the domestic steel sector as it is expected to accelerate the adoption of green steelmaking technologies and reduce the industry's carbon footprint. India's steel sector currently has an emission intensity of ~2.55 tonnes of CO₂ per tonne of crude steel, higher than the global average of ~1.9 tonnes. The transition towards cleaner production is increasingly important considering the EU's Carbon Border Adjustment Mechanism, which could improve the long-term export competitiveness of Indian steel producers, particularly in European markets

Impact: Positive

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