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India is considering a phased policy that would require green steel in public procurement, a move that could reshape demand across the domestic steel industry. The proposal is aimed at creating a reliable market for certified low-carbon steel by linking government buying to cleaner production standards.
Industry estimates suggest the policy could unlock up to 16 million tonnes of certified green steel supply by FY2030 if public procurement commits a meaningful share to low-carbon products. Since government projects consume large volumes of steel every year, the shift could become a major demand catalyst for producers investing in decarbonisation.
Steelmakers appear broadly ready, but they want clear rules, standard certification, and support mechanisms to offset the initial green premium. Procurement agencies are also looking for defined thresholds, standard tender formats, training, and time-bound financial support before large-scale rollout.If implemented well, the policy could accelerate India’s green steel transition, support cleaner infrastructure development, and give low-emission steel producers an early commercial advantage in one of the world’s largest public procurement markets.
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