By – Mr Harsh Bansal, MD of BMW Industries Limited
“The Union Budget 2026–27 makes an important move for India’s steel sector by proposing a ₹20,000 crore outlay over the next five years for Carbon Capture, Utilisation and Storage (CCUS) technologies. This investment recognises that while steel production is a key driver of India’s infrastructure and development, it is also one of the most carbon‑intensive industries. Supporting CCUS will help steel companies capture and reuse carbon emissions, reduce environmental impact, and align with global climate commitments such as India’s net‑zero by 2070 goal.
For the steel industry as a whole, this Budget measure provides a practical solution to strengthen competitiveness in a world increasingly focused on low‑carbon manufacturing. By lowering the cost barrier for adopting CCUS and related green technologies, the government is encouraging producers to transition toward cleaner operations. This will attract investment, enable access to export markets with carbon standards, and improve the sector’s global standing. At the same time, simplifying customs processes and making imports and exports easier will reduce transaction delays and costs, further enhancing India’s competitiveness in global steel trade. These actions will also help build stronger supply chains and create new opportunities in areas such as recycled steel, green hydrogen integration, and renewable energy use within steel plants.
Overall, this Budget initiative is a step toward balancing industrial growth with environmental responsibility, enabling the steel industry to grow sustainably, reduce its carbon footprint, and contribute to India’s broader climate, economic, and trade goals.”