India is taking a major step toward cleaner industrial production after committing ₹455 crore to pilot projects that will integrate hydrogen into steel manufacturing, one of the country’s most carbon-intensive industries.
The funding has been approved under the National Green Hydrogen Mission, led by the Ministry of New & Renewable Energy, and will remain available through the 2029–30 financial year, according to information shared in Parliament.
Cutting Emissions in Steelmaking
Steel production is among India’s largest industrial sources of emissions due to its heavy dependence on coal. In a written reply to the Rajya Sabha, Minister of State for Steel Bhupathiraju Srinivasa Varma said the hydrogen-based pilots aim to reduce this reliance and significantly lower carbon output from the sector.
So far, four pilot projects have been approved—one at a central public sector enterprise and three at private steel plants—marking the first practical deployment of hydrogen in India’s steel industry.
Supporting India’s Net-Zero Goals
The initiative forms part of a broader strategy to scale up green and low-carbon steel production, supporting India’s long-term objective of achieving net-zero emissions by 2070.
As a key policy milestone, the Ministry of Steel announced the Taxonomy of Green Steel in December 2024. The framework establishes clear definitions and standards for classifying low-emission steel, providing industry with a consistent benchmark for cleaner production.
Under the new taxonomy, 43 private steel units have already received Green Steel Certificates, representing a combined annual capacity of 11.6 million tonnes. These facilities are currently producing around 7.1 million tonnes of green steel per year, a figure expected to rise as more producers adopt cleaner technologies.
Roadmap for a Cleaner Steel Sector
To guide the transition, the Ministry of Steel has also released a comprehensive policy document titled “Greening the Steel Sector in India: Roadmap and Action Plan.” Developed using recommendations from 14 specialised task forces, the report outlines long-term strategies for decarbonising the steel industry.
Together, hydrogen pilot projects, certification standards, and policy roadmaps signal a coordinated push to modernise India’s steel sector—positioning the country to remain competitive while aligning industrial growth with climate commitments.