PM Modi shares article on carbon capture as key to India’s next steel revolution
Prime Minister Narendra Modi on Wednesday shared an article by Union Minister for Heavy Industries and Steel H.D. Kumaraswamy, highlighting the role of carbon capture technologies in driving India’s next phase of transformation in the steel sector.
In a post on X, the Prime Minister said “Carbon capture can power India’s next steel revolution. Union Minister Shri HD Kumaraswamy writes how our guided efforts towards Net Zero 2070 commitment, strategic investments, hydrogen initiatives and a lot more shall drive growth, global competitiveness and lead the road to a Viksit Bharat! Do read the article for more insights.”
In his article, Kumaraswamy outlined how carbon capture, utilisation and storage (CCUS) can accelerate the decarbonisation of India’s steel sector while safeguarding growth and competitiveness.
Guided by PM Modi’s vision and India’s commitment to achieve net zero emissions by 2070, Kumaraswamy said the country is undertaking a transformative journey towards sustainable and resilient industrial growth, with the steel industry at the centre of this transition.
India is currently the world’s second-largest crude steel producer, with an output of around 152 million tonnes in FY 2024-25. Under the National Steel Policy 2017, the country aims to achieve 300 million tonnes of crude steel capacity by FY 2030-31, with a longer-term vision of reaching 500 million tonnes by 2047.
However, steel production remains energy- and emissions-intensive. The sector, which largely relies on blast furnace and coal-based direct reduced iron routes, contributes nearly 10–12 per cent of India’s total greenhouse gas emissions. Addressing this challenge is critical not only for meeting climate goals but also for maintaining the global competitiveness of Indian steel in an increasingly carbon-conscious world.
The government has initiated several measures to support cleaner steel production. The introduction of a green steel taxonomy defines emission intensity benchmarks – less than 2.2 tonnes of CO2 equivalent per tonne of finished steel – and provides a star-rating framework to classify low-emission steel products. This is expected to unlock demand for green steel across infrastructure, construction and manufacturing sectors.
In addition, ₹455 crore has been allocated under the National Green Hydrogen Mission to pilot the use of green hydrogen in steel production, signalling a push towards transformative technologies in the sector.
A major policy boost came in the Union Budget, which allocated ₹20,000 crore for piloting carbon capture, utilisation and storage technologies across five sectors, including steel. Kumaraswamy described this as a decisive intervention, noting that CCUS offers a direct solution to process-related emissions that are difficult to eliminate even with improved energy efficiency and renewable power adoption.
By capturing carbon dioxide from blast furnaces and direct reduced iron operations before it is released into the atmosphere, CCUS can significantly reduce emissions while allowing existing steel plants to continue operating. This is particularly relevant for India, where a large base of steelmaking assets is expected to remain in service for decades.
The budgetary support for CCUS is expected to help establish technical standards, build domestic expertise and reduce costs through innovation and scale. It could also create new industrial ecosystems around carbon transport, utilisation and storage, generating skilled employment and enabling industrial symbiosis.
Kumaraswamy further noted that early adoption of CCUS could strengthen India’s position in global steel markets, especially as carbon border measures and sustainability standards gain prominence worldwide. Steel produced with integrated carbon capture systems may enjoy a competitive advantage in export markets and attract climate-aligned investments.
Emphasising the need for coordinated action, the minister called for industry initiatives in long-term carbon storage, shared infrastructure development and integration with renewable energy systems. Public-private partnerships and robust monitoring frameworks will be critical to ensure environmental integrity and scale.
“India’s steel ambitions are inseparable from its climate commitments,” Kumaraswamy wrote, adding that by placing carbon capture at the heart of its decarbonisation strategy – alongside green hydrogen and other clean technologies – India can demonstrate that industrial growth and climate responsibility can advance together.
The minister said the current budgetary push for CCUS could define the future of Indian steel, transforming it into a pillar of sustainable and resilient development.
