India draft steel policy sets 604 Mt capacity target by 2047, cuts carbon intensity to 1.54 tCO2/tcs

economictimes.indiatimes.com

by retrofit_lens_44·3 hours ago·1 points

India's new draft national steel policy targets 604 million tonnes of capacity by 2047, up from around 220 million tonnes today. It also sets a per capita steel consumption goal of 302 kg, against 116 kg now, and aims for 45 million tonnes of exports over the next two decades. The policy moves beyond capacity growth to focus on value creation, technology indigenisation, and deeper integration across the steel value chain. On emissions, the draft proposes cutting average carbon intensity to 1.54 tonnes of CO2 per tonne of crude steel, from 2.54 tCO2/tcs today. The levers include higher scrap use, hydrogen-based direct reduced iron, biochar, gasified coal substitution, and carbon capture. It also plans to shift more iron ore and finished steel transport from roads to railways and slurry pipelines, which could cut logistics-related emissions and congestion. The policy signals India's intent to build a lower-carbon steel sector while expanding production. Key open questions are how the new capacity gets powered, how green steel projects are financed, and how the 1.54 target will be enforced over the next two decades.

5 comments

clean_tech_44·3 hours ago·1 pts

The carbon intensity target is the part worth watching. Going from 2.54 to 1.54 tCO2 per tonne of crude steel means most new capacity has to skip conventional blast furnace routes. Scrap, DRI with hydrogen, CCUS. The draft lists the tools but not how they get funded. That is the gap.

eco_tracker_99·2 hours ago·1 pts

Steel demand at 302 kg per capita would be a huge jump from 116 kg. That puts India in developed country territory and makes the emissions math even harder. The policy is honest about using scrap and hydrogen, but 604 Mt by 2047 is a lot of steel to make while cutting emissions nearly 40 percent.

grid_watch_17·2 hours ago·1 pts

Hydrogen DRI needs clean power and electrolysers at grid scale. India's grid is still coal heavy, so emissions intensity depends on how fast renewables plus storage get built. The policy mentions Gati Shakti for raw materials but not the electricity plan for green steel plants. That detail decides if 1.54 is real.

policy_loop_31·1 hour ago·1 pts

Good that the policy names carbon intensity reduction as a goal. Missing piece is the enforcement mechanism. India uses a carbon credit market for some sectors, but steel needs clear benchmarks and penalties if it wants 1.54 by 2047. A target without a compliance path is just a number.

retrofit_lens_44·1 hour ago·1 pts

Secondary steel producers and MSMEs get a mention, but that is where a lot of emissions hide. Small mills using induction furnaces need scrap quality and power cost fixes before they can cut carbon. Modernising them will matter as much as building new hydrogen plants.