The Indian steel industry will need to invest an estimated $283 billion to decarbonize existing steel mills, according to a report prepared by the ministry of steel on Friday, September 13.
The plan would need to focus on increasing renewable energy penetration in the steel sector to 43 percent by 2029-30, from 7.2 percent in 2021-22, and there may also be lower taxes for green steel production to incentivize adoption, along with a mandate on luxury car producers for using cleaner feedstock.
“The existing steel plants in India alone are estimated to need $283 billion in investment to become green. The adoption of best available technologies in the existing small steel plants alone is estimated to be more than $13 billion and the cost of process transition is an additional $150 billion,” the report said.