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Yahoo
6 days ago
- Business
- Yahoo
India's finance ministry wants lower energy prices for green steel incentives, sources say
By Neha Arora NEW DELHI (Reuters) -India's finance ministry wants green hydrogen prices to soften before deciding on financial support for production of steel using clean energy, two sources familiar with the matter said, as New Delhi seeks to control inflation and its expenditure. Indian steel producers have been asking for federal incentives as the nation considers mandating the use of a certain percentage of green steel in government projects. India, the world's biggest steel producer after China and a key green house gas emitter, has been working on a green steel policy to decarbonise production of the alloy. A delay in the launch of federal financial support could slow India's energy transition plans to meet 2070 net zero goal. The steel ministry is seeking incentives from the finance ministry for decarbonisation efforts. The finance ministry has argued that high green hydrogen costs would make use of green steel unviable and 'potentially inflationary', the sources told Reuters. The deliberations between the two ministries have been slowed, as the finance ministry has cautioned against a "hasty approach," one of the sources said, declining to be identified as discussions are not public. "Steel is an intermediate product and manufacturing green steel would be costly and there is a need to have a balanced approach between growth and sustainability," the source said, referring to the finance ministry's thinking. India's finance and steel ministries did not respond to Reuters' emails seeking comments. Currently, a majority of Indian steel mills depend on coal for their blast furnace operations. The steel ministry has touted the use of green hydrogen as an alternative but high costs are a deterrent. In December, India said steel produced with carbon dioxide emissions of less than 2.2 tonne per tonne of finished steel would be defined as "green steel". Steel producers in India, the world's fastest-growing major economy, generate 2.55 metric tons of carbon dioxide per ton of crude steel produced, 38% higher than the global average of 1.85 tons, according to Global Energy Monitor. Error al recuperar los datos Inicia sesión para acceder a tu cartera de valores Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos
Reuters
6 days ago
- Business
- Reuters
India's finance ministry wants lower energy prices for green steel incentives, sources say
NEW DELHI, June 4 (Reuters) - India's finance ministry wants green hydrogen prices to soften before deciding on financial support for production of steel using clean energy, two sources familiar with the matter said, as New Delhi seeks to control inflation and its expenditure. Indian steel producers have been asking for federal incentives as the nation considers mandating the use of a certain percentage of green steel in government projects. India, the world's biggest steel producer after China and a key green house gas emitter, has been working on a green steel policy to decarbonise production of the alloy. A delay in the launch of federal financial support could slow India's energy transition plans to meet 2070 net zero goal. The steel ministry is seeking incentives from the finance ministry for decarbonisation efforts. The finance ministry has argued that high green hydrogen costs would make use of green steel unviable and 'potentially inflationary', the sources told Reuters. The deliberations between the two ministries have been slowed, as the finance ministry has cautioned against a "hasty approach," one of the sources said, declining to be identified as discussions are not public. "Steel is an intermediate product and manufacturing green steel would be costly and there is a need to have a balanced approach between growth and sustainability," the source said, referring to the finance ministry's thinking. India's finance and steel ministries did not respond to Reuters' emails seeking comments. Currently, a majority of Indian steel mills depend on coal for their blast furnace operations. The steel ministry has touted the use of green hydrogen as an alternative but high costs are a deterrent. In December, India said steel produced with carbon dioxide emissions of less than 2.2 tonne per tonne of finished steel would be defined as "green steel". Steel producers in India, the world's fastest-growing major economy, generate 2.55 metric tons of carbon dioxide per ton of crude steel produced, 38% higher than the global average of 1.85 tons, according to Global Energy Monitor.
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Business Standard
25-04-2025
- Business
- Business Standard
Steel sector to play vital role in achieving $5 trn economy goal: Pradhan
Steel sector will play a vital role in economic growth, job creation and industrial development as the country aspire to become a $5-trillion economy, Union Education Minister Dharmendra Pradhan said on Friday. He also said that green steel is the priority of the government to turn industrial transformation into a competitive advantage and this transition is magnificent in progress. Pradhan, who held the portfolio of the Steel Ministry earlier, was speaking at the second day of the 6th edition of Steel India 2025 Conference and Exhibition, being hosted jointly by the Ministry of Steel and industry body Ficci here. "As India progresses towards becoming a $5-trillion economy, the steel sector will play a vital role in economic growth, job creation and industrial development. This is India's decade to showcase innovation and collaboration across sectors as we work to realize the vision of Vikasit Bharat," Pradhan said. The steel industry will set a global benchmark for sustainable and inclusive progress and this is a powerful signal of our growing Atmnirbharta and quest towards becoming responsible global power, he said. India's steel industry has mirrored the nation's broader economic development, the minister said adding it has evolved from modest beginning to becoming the second largest steel producer in the world, overtaking Japan in 2018. "Over the past decade, we have more than doubled our production capacity. Modernized steel plants improved our logistics and supply chains from 88 million tonnes in 2014 to over 144 million tonnes today," he said. India now contributes more than 7.5 per cent of global steel output, he noted. "The growth reflects India's commitment to modernization, self-reliance and sustainable industrial development. Steel is the spine of which the economy continues to flourish. India's industrial progress can be credited to the significant contribution of public sector companies as well as the private leaders," Pradhan emphasised. Stating that the states such as Odisha, Jharkhand, Chhattisgarh, West Bengal and Northern Andhra Pradesh are fast emerging as steel hubs, he said Odisha in particular is leveraging its resources and ports like Paradip and Dhamra to lead this industrial transformation. Through new plants, clusters and infrastructures, we aim to add 200 million tonnes of capacity in this region by 2031, ensuring balanced, inclusive and sustainable growth, he added. "Our growth trajectory is impressive, but sustaining this momentum requires strategic policy frameworks that balance industrial growth and national priorities," the minister remarked. He mentioned that the National Steel Policy 2017 has been a critical driver of the steel sector's growth and it has laid down ambitious targets including achieving a crude steel capacity of 300 million tonnes by 2031. The government is making decarbonisation a top national priority and taking decisive steps to enhance the environmental sustainability of the steel industry while it is believed that work is underway on a 15,000 crore green steel mission designed to support R&D, pilot projects and commercial adoption of clean technologies, he said. This includes integration with the National Green Hydrogen Mission to use green hydrogen as a clean fuel in steelmaking, he stated. " Our journey is not just about catching up but taking a quantum jump. The goal is to create a uniquely India model, sustainable industrialization and balance scale with statewardship, production with purpose," he said. Education is the bedrock of innovation and our research institutions are playing a leading role in driving the green transition, he said. Pradhan sounded optimistic that a culture of innovation and entrepreneurship will spawn the next generation of clean tech start-ups, process innovations that can be patented and exported globally. Today, India's steel industry stands at a crucial juncture, poised for significant growth with embracing sustainability, he said. India's green steel mission is still unfolding with vast scope for innovation, investment and impact. Large-scale infrastructure projects and government initiatives like Make in India, National Infrastructure Pipeline and the PM Gatishakti National Master Plan are driving demand and ensuring continued growth, Pradhan said. Strategic investments from both government and private sector are set to enhance productivity and competitiveness, enabling the steel industry to exceed the ambitious target by the National Steel Policy 2070, he stated. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
