India's Rs 19,700 Crore Carbon Capture Plan: Key Details for Investors in CCUS Technology

India has approved a Rs 19,700 crore government scheme to support carbon capture, utilization, and storage (CCUS) technologies in heavy industries like power, steel, and cement. The program aims to attract around Rs 17,800 crore in private investment and build a carbon capture capacity of 7 million tonnes annually. This is a significant move for hard-to-abate sectors that rely on fossil fuels and high-temperature heat, as CCUS can capture CO2 at the source before it reaches the atmosphere. However, the scheme faces challenges. CCUS remains capital-intensive, requiring major upfront spending on equipment, pipelines, and storage infrastructure. Without a clear carbon price in India, companies may struggle to justify these costs to shareholders. There are also regulatory uncertainties around storage site liability and geological surveys. Investors should watch for final cabinet approval, carbon pricing signals, and company announcements on pilot projects.