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India’s green steel journey faces a major hurdle as limited domestic scrap availability restricts large-scale scrap-based steelmaking. Former Steel Secretary Sanjay Kumar Singh said only around 25% of India’s steel demand can currently be met through scrap-based production, making continued reliance on iron ore and blast furnace routes unavoidable.
The challenge comes at a time when India’s steel consumption and crude steel production are growing strongly. Lower-grade iron ore is also adding pressure, as it requires more energy during production and increases carbon emissions. This makes decarbonisation more complex for steelmakers already balancing raw material security, cost pressures and sustainability targets.
Singh noted that renewable energy, electric arc furnaces and higher scrap use can significantly cut emissions, but fully green commercial steel production remains difficult at present. Government initiatives such as the National Green Hydrogen Mission, proposed green steel mission and Carbon Credit Trading System are expected to support the sector’s transition.
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