| Aspect | Details |
|---|---|
| Policy Name | Green Steel Procurement Policy |
| Objective | Mandate 25% of public steel purchases to be sourced from low-emission, eco-friendly production methods. |
| Purpose | Stimulate demand for green steel, positioning India as a global leader in climate-friendly industrial practices. |
| Background | Green steel is produced using low-carbon technologies like hydrogen-based Direct Reduced Iron (DRI) or electric arc furnaces powered by renewables, replacing coal-based blast furnaces. |
| Significance | Steel industry contributes 10-12% of India's greenhouse gas emissions. Decarbonisation is crucial for India's climate targets and sustainable industrial growth. |
| Key Features | 1. Mandates 25% public procurement of green steel.<br>2. Led by the Ministry of Steel.<br>3. Uses hydrogen-based DRI, electric arc furnaces, and renewables.<br>4. Encourages steel scrap usage. |
| Challenges | High production costs, evolving technologies (e.g., hydrogen-based DRI), lack of commercialisation, insufficient renewable energy capacity, and limited private sector incentives. |
| Supportive Schemes | Steel Scrap Recycling Policy (2019), PAT Scheme, National Solar Mission (2010), and vehicle scrapping rules (2021) to promote low-emission production. |
| Steps Taken | Ministry of Steel released "Greening the Steel Sector in India: Roadmap and Action Plan" with input from 14 task forces. Policies focus on scrap recycling, renewable energy, and energy reduction. |
Workflow
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