Is Rs 455 crore allocated for hydrogen-based steel projects a game changer for India?
Click to start listening
Synopsis
India has allocated Rs 455 crore for hydrogen-based steel projects, marking a significant step towards cleaner industrial production. This funding aims to reduce carbon emissions in the steel sector as part of the National Green Hydrogen Mission, contributing to India's net-zero goals by 2070.
Key Takeaways
- Rs 455 crore allocated for hydrogen projects.
- Funding available until 2029-30.
- Focus on reducing carbon emissions in steel sector.
- Four pilot projects awarded, including public and private sectors.
- Supports India's net-zero emissions goal by 2070.
New Delhi, Dec 12 (NationPress) India has made a significant advancement towards more sustainable industrial practices by earmarking Rs 455 crore for pilot initiatives that will incorporate hydrogen in the steel sector, as disclosed in Parliament on Friday.
This financial support has been sanctioned under the National Green Hydrogen Mission initiated by the Ministry of New & Renewable Energy, with funding available until the fiscal year 2029–30.
The objective of these pilot projects is to diminish carbon emissions from steel manufacturing, recognized as one of the most energy-consuming industries in the nation, according to Minister of State for Steel Bhupathiraju Srinivasa Varma in a written statement to the Rajya Sabha.
Data indicates that four pilot initiatives have already been allocated, including one in a central public sector enterprise and three in private steel manufacturers.
Integrating hydrogen into the steelmaking procedure is anticipated to lower reliance on coal and significantly cut down emissions.
The government is also implementing various measures to boost the production of green or low-carbon steel, aligning with India's ambition to achieve net-zero emissions by 2070.
In line with these efforts, the Ministry of Steel announced the Taxonomy of Green Steel on December 23, 2024. This framework establishes clear criteria for defining and classifying low-emission steel.
Currently, 43 private steel units have been awarded ‘Green Steel Certificates’ under this new classification, boasting a combined production capacity of 11.6 million tonnes annually, with 7.1 million tonnes of green steel produced each year.
This certification is expected to motivate more companies to embrace cleaner technologies and transition towards sustainable manufacturing.
To aid this transition, the Ministry of Steel has released a comprehensive report titled “Greening the Steel Sector in India: Roadmap and Action Plan.” This document, informed by recommendations from 14 task forces, outlines long-term strategies to make the Indian steel industry more sustainable.
It serves as a blueprint for the sector’s contribution to the country’s net-zero roadmap.
Point of View
This significant allocation of Rs 455 crore demonstrates India's commitment to transitioning towards a greener economy. The focus on hydrogen as a clean energy source in the steel sector not only addresses the urgent need for reduced carbon emissions but also positions India as a leader in sustainable industrial practices.
NationPress
12/12/2025
Frequently Asked Questions
What is the purpose of the Rs 455 crore allocation?
The allocation aims to fund pilot projects that use hydrogen in the steel sector to reduce carbon emissions.
How long will the funding be available?
The funding will be accessible until the financial year 2029–30.
What is the expected impact of hydrogen in steel production?
Integrating hydrogen is expected to lower dependence on coal and significantly reduce emissions.
How many projects have been awarded so far?
Four pilot projects have already been awarded, including one in a public sector enterprise and three in private companies.
What is the goal of India's National Green Hydrogen Mission?
The mission aims to promote clean hydrogen production and usage, contributing to India's net-zero emissions target by 2070.
