Document shows India wants to double its capacity and reduce steel emissions by 25%.

India's steel mills plan to reduce carbon emissions by around a quarter in the next decade, and to reduce their reliance on coal. The world's second largest producer of the alloy plans to double its output.

According to a draft of a cabinet note from March 10 that was reviewed by the.

It has never been reported that the new target for emissions reductions is a new one.

The document showed that India's steelmakers emit 2.65 tons per ton finished steel. This is 32% more than the global average, which is 2 tons. It also accounts for 10-12% of India's total emissions.

India is being hit by the European Union’s carbon border tax, which imposes fees on imports such as steel, cement, and other high-carbon products. This has forced New Delhi to search for alternative export markets.

The policy proposes to promote gas-based steelmaking, increase the use of steel scrap, and offer incentives for continuous emissions reduction.

The oil ministry should also be consulted to ensure that overseas gas supplies are secured and partnerships formed.

The ministry of steel did not reply to an email asking for comments.

The document stated that only 21% of the blast furnace capacity, and 5% of direct-reduced iron (DRI), or sponge iron produced without melting using coal or gas, have access to gas pipe infrastructure.

The document stated that "as steelmaking capacities grow, decarbonising this sector is critical for India's goal of net-zero emission by 2070."

India, boosted by its rapid economic growth and increased infrastructure spending, has set a goal to increase crude steel production to 400 million tonnes by 2035-2036. This is an increase from the current output of 168 million tones.

The country also wants to double its exports, to 20 millions tons.

Steel sector employment is expected to increase with capacity expansion. The steel industry employs over 2.8 million workers and represents 2.5% of the country's $4 trillion economy.

The document stated that India would need to invest around 17 trillion rupees (about $183.41 billion) in capital investments before it can reach 400 million tonnes of crude steel?capacity. This could create over 3 million jobs by 2035-36.

The policy calls for a reduction in import dependency on coking coal (a key raw materials) to 80% from 90% at present by 2035-2036.

India has identified 19 countries to collaborate with, including Australia and Russia. ($1 = 92.68 rupies) (Reporting and editing by Mayank Bhahardwaj, Elaine Hardcastle).

(source: Reuters)