On the first day of the World Economic Forum (WEF) at Davos, the state government signed memorandums of understanding (MoUs) worth over Rs 3.35 trillion for industrial investments in Vidarbha. By 8:30 pm (Indian time), the largest deal was secured with JSW Group, involving investment proposals worth Rs 3 trillion, which are expected to create 10,000 jobs. A significant portion of this investment is likely to be concentrated in Nagpur and Gadchiroli.

The Pune-based Kalyani Group, with interests in the defence and steel sectors, also signed an MoU for an investment proposal in Gadchiroli. According to a source from the state’s industries department, there is a possibility that the company will establish a defence production unit there.

India’s Ministry of Steel has requested 150 billion rupees (approximately $1.74 billion) from the federal budget to incentivise mills to produce low-carbon steel, according to two government sources familiar with the matter.

As the world’s second-largest steel producer after China, India is actively working on a green steel policy aimed at reducing emissions in steel production. This initiative forms part of the country’s broader efforts to meet its net-zero target by 2070, as outlined by Prime Minister Narendra Modi.

The steel ministry plans to use the funds to offer incentives that encourage emissions reduction, improve research and development, increase raw material efficiency, and incentivise banks to offer lower interest rates on renewable energy loans. These details were shared by the sources, who requested anonymity as the discussions are private.

The steel ministry did not respond to an email seeking comment.

Once the funds are allocated, the ministry will submit the proposal for the cabinet’s approval. In December, the government defined ‘green steel’ as steel produced with emissions lower than 2.2 metric tons of CO2 per tonne of finished steel.

The proposed incentives would remain in place until 2030, with green steel potentially being used in government projects.

India’s steel production generates 2.55 metric tons of carbon dioxide per tonne of crude steel, 38% higher than the global average of 1.85 tons, according to Global Energy Monitor.

The Indian cement sector, responsible for 5.8 per cent of the country’s total CO? emissions, requires the adoption of carbon capture, utilisation, and storage (CCUS) technologies to achieve a 35-45 per cent reduction in emissions and meet the net-zero target by 2070. This need was highlighted at a workshop organized by NITI Aayog at Vigyan Bhawan.

Titled “Carbon Capture, Utilization, and Storage (CCUS) in the Indian Cement Sector,” the workshop brought together government officials, industry leaders, researchers, and academicians to discuss decarbonisation strategies. The Indian cement industry, with an installed capacity of 600 million tonnes and an annual production of 391 million tonnes, plays a critical role in the country’s infrastructure development and economy.

Prof Ajay Kumar Sood, Principal Scientific Adviser to the Prime Minister, stated that CCUS is an essential tool for addressing emissions in the cement sector, which is crucial for meeting India’s long-term climate goals. He stressed the need to balance economic growth with environmental targets and advance research and development to overcome challenges in decarbonizing this hard-to-abate sector.

Dr VK Saraswat, Member of NITI Aayog, noted that the cement industry is a key player in the Asia-Pacific region, which is witnessing rapid growth in the global cement market. He emphasised that carbon capture and utilization technologies, along with clean energy initiatives, are vital for reducing emissions in the cement sector. He also highlighted the role of carbon pricing and climate finance in supporting decarbonisation efforts.

India holds significant potential for CCUS, with regions like the Krishna-Godavari Basin, Deccan Traps, and mature oil and gas fields offering substantial CO? storage capacity. Innovative utilisation pathways, such as producing methanol, biodegradable plastics, and value-added chemicals, were discussed as potential solutions for creating a low-carbon future.

Pankaj Agarwal, Secretary of the Ministry of Power, shared that the government is preparing a comprehensive CCUS Mission to support these efforts. Ranjith Rath, CMD of Oil India, emphasised the need for innovative solutions and geo-sequestration techniques to mitigate emissions effectively.