The Indian government is close to approving a package of about $570 million to offer fiscal incentives for the production of environmentally friendly steel in the country, government sources said on Monday, September 8.Fiscal incentives can come in various forms, such as concessional loans from financial institutions, risk guarantees, and special financing instruments, with secondary steel producers accounting for half of domestic finished steel production being targeted.
However, blast furnace operators will also be eligible for benefits from the building, subject to certain specific conditions, the sources added.
The Government is committed to promoting the use of the best raw materials, alternative fuels and renewable energy sources in steel production. According to the National Steel Policy for 2017, India has already set a target to reduce emissions to 2.6-2.7 million tons of carbon dioxide per ton of crude steel using electric arc furnace technology by 2030.
A recent Ernst-Young-Parthenon report predicts that India's green steel production will reach about 4.49 million tons by 2030, driven by the construction, infrastructure, and automotive sectors.
