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India’s Steel Sector Eyes Verdant Rebirth Via Decarbonisation Crusade

Monday, June 2, 2025

Synopsis: - The Indian government, through NISST and industry partners like AIIFA and SMAM, has reinforced its commitment to decarbonising the steel sector in line with national climate goals, according to NISST director Paramjeet Singh at a recent conference in Jalna, Maharashtra.

National Push for a Greener Steel IndustryIndia has launched a determined initiative to decarbonise its steel sector, with a vision to build a globally competitive also environmentally sustainable industry. At a major industry event in Jalna, Maharashtra, Paramjeet Singh, director of the National Institute of Secondary Steel Technology, emphasised that the move is vital for achieving the country's climate targets under international agreements. He reiterated the Union government’s support and NISST’s active role in this transformative journey.

 

A Strategic Conference on Green SteelThe recent conference titled ‘Role of Decarbonisation in Green Steel Production and Its Uses’ brought together leading stakeholders from across the industry. Organised jointly by the All India Induction Furnaces Association, Steel Manufacturers Association of Maharashtra, NISST, also the Jalna Steel Manufacturers Association, the event served as a strategic platform to discuss India’s path toward low-emission steel manufacturing and the roadmap to align industrial practices with ecological imperatives.

 

Key Message from NISST LeadershipParamjeet Singh underscored that decarbonisation is no longer optional, but essential for India’s aspirations to meet its nationally determined contributions under the Paris Agreement. He stated that the steel sector contributes significantly to India’s CO₂ emissions and needs targeted reform through green technologies, energy efficiency, and carbon capture measures. NISST, he said, will facilitate research, training, also technical support across the industry.

 

Building an Ecosystem for Green SteelIn his address, SMAM president Yogesh Mandhani highlighted the need for an integrated framework to support the transition to green steel. He proposed the development of a green steel registry, certification mechanisms, and regulatory incentives to encourage adoption. “Creating a well-defined ecosystem will be critical to ensure cost-effective decarbonisation,” Mandhani said, adding that such infrastructure would enhance both domestic credibility and international competitiveness.

 

Role of Induction Furnace SegmentAIIFA, representing the induction furnace segment which contributes a large share of India’s secondary steel output, also stressed the urgency of modernising the sector. Many induction furnace units operate on outdated energy-intensive methods. AIIFA members voiced support for government-backed upgradation schemes, technical consultancy, and financial mechanisms to help small and medium units reduce emissions and shift to energy-efficient processes using renewable energy or low-carbon fuels like H₂.

 

Technological Avenues for Emission ReductionExperts at the conference explored multiple pathways for reducing CO₂ emissions in steel production. These included increased use of electric arc furnaces, scrap-based steelmaking, hydrogen-based reduction, and carbon capture and storage. The speakers noted that while green hydrogen is still expensive, its future deployment could revolutionise the industry’s emission profile. Pilot projects using solar-powered furnaces and waste heat recovery systems were also discussed.

 

Incentives, Certification, also Policy SupportParticipants called for policy alignment between the Ministry of Steel, the Ministry of Power, and the Ministry of New and Renewable Energy to streamline decarbonisation efforts. Proposals included tax rebates, concessional power tariffs, and subsidies for equipment retrofitting. Industry leaders urged that green steel be recognised under a verified certification scheme to help producers market their products domestically and abroad as environmentally responsible.

 

India’s Global Climate CommitmentsIndia, as the second-largest producer of steel in the world, holds a critical position in the global decarbonisation effort. With commitments to reduce the emissions intensity of its GDP by 45% by 2030, the steel sector’s transformation is indispensable. The Jalna conference made it clear that a coordinated effort involving policymakers, technology providers, manufacturers, and certifying bodies will be needed to make the vision of green steel a tangible reality.

 

Key Takeaways:

  • NISST director Paramjeet Singh confirmed India's steel decarbonisation drive aligns with national climate goals.

  • SMAM called for a certified green steel ecosystem with a formal registry also policy incentives.

  • Industry stakeholders proposed use of hydrogen, electric arc furnaces, also carbon capture to reduce CO₂ output.

 

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