The Indian steel industry is preparing to integrate artificial intelligence (AI) into its operations to improve efficiency and sustainability. Stakeholders are also seeking increased financing for a green transition. These efforts aim to enhance the sector's competitiveness while aligning with environmental goals. The industry consumes approximately 20% of India's total industrial energy, with 85% of that energy coming from coal-based power sources, making it a significant contributor to carbon emissions.
Discussions are underway regarding decarbonisation measures, price risk management, and improvements in logistics and infrastructure efficiency. Several Indian steel companies, including TATA Steel, JSW Steel, and JSPL, have already set decarbonisation targets and disclosed transition plans. The government is also incentivising sustainable steel production through a national mission, potentially offering ₹5,000 crore in support to both primary and secondary producers via concessional loans and risk guarantees.
These initiatives are crucial for India to meet its net-zero targets by 2070, particularly as the steel sector is a major carbon emitter. Transition finance is emerging as a key enabler, facilitating the flow of sustainable finance towards transitional activities in sectors lacking readily available green alternatives.
