Green Steel


Steel Ministry is formulating a comprehensive green steel policy to reduce carbon emissions in steel production.


GS-02 GS-03 (Government Policies & Interventions, Environmental Pollution & Degradation, Growth & Development)

Key Highlights:

  • The policy aims to define the manufacturing process, skill-set requirements, and funding support for green steel.
  • Task forces have been established to explore modalities of green steel-making, including the use of biochar or biomass to reduce carbon emissions.
  • India is exploring its own pure-hydrogen based DRI technology and pilot projects for hydrogen-based DRI facilities are being considered.
  • The Ministry of New and Renewable Energy has allocated funds for piloting the use of hydrogen in steel making as part of the green steel initiative.

What is Green Steel?

  • It is that steel which is manufactured without the use of Fossil Fuels in it or the steel produced through processes that do not emit Carbon-Dioxide.
  • This is achieved by using low-carbon energy sources like Hydrogen, electricity or coal gasification in place of old coal-fired plants.
  • It also uses scrap steel as raw materials which eventually reduces environmental impact of steel production.

Status of Steel production in India:

  • As of December 2023, India ranks as the world’s second-largest producer of crude steel, with a production of 125.32 million tonnes.
    • However, China is the largest producer of steel, accounting for 57% of the world’s steel production
  • Over 80% of India’s steel reserves are concentrated in states like Odisha, Jharkhand, West Bengal, Chhattisgarh, and parts of Andhra Pradesh.
  • Major steel-producing centers include Bhilai (Chhattisgarh), Durgapur (West Bengal), Burnpur (West Bengal), Jamshedpur (Jharkhand), Rourkela (Odisha), and Bokaro (Jharkhand).
  • India is the world’s second-largest consumer of finished steel in 2021, consuming 106.23 million tonnes, following China, according to the World Steel Association.