Five Industry Groups Urge Strong Demand Mandate and Fiscal Support for Green Steel Procurement Ahead of Union Budget
Ahead of the Union Budget, five industry groups have called for a strong demand mandate and targeted fiscal support for low-carbon steel procurement in India's public infrastructure projects. They emphasize that Green Public Procurement should drive market creation and urge the Ministry of Finance to implement incentives and budget provisions to foster demand for green steel, thereby reducing reliance on long-term subsidies. The organizations stress the importance of aligning fiscal policy with sustainable steel initiatives as the government advances its green steel agenda.
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Ahead of the Union Budget, five industry and policy organizations have called for a clear demand mandate and targeted fiscal measures for low-carbon steel procurement in public infrastructure projects in India. Public procurement accounts for 22-25% of India's steel demand, emphasizing the need for aligned procurement rules and budget provisions as the government advances green steel policies.
The groups stress that Green Public Procurement (GPP) should be the primary instrument for market creation, with procurement mandates creating predictable demand for low-carbon steel. Support from the Ministry of Finance is crucial, whether through incentives to bridge the green steel premium or GST rationalization.
They argue that fiscal interventions can ease procurement constraints and accelerate market formation, avoiding long-term subsidy dependence. The organizations, including the Confederation of Indian Industry and India Energy & Climate Center, highlight the importance of the upcoming Union Budget to align fiscal policy with a strong demand mandate for green steel.
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