But many members saw a barrier: the “green premium.” Producing green steel carries high upfront costs for manufacturers. Does this mean that using public procurement to boost demand for premium green steel is an unworkable strategy? As a result, even a 30% premium on green steel, and exclusive use of green steel by public sector infrastructure, translates into an increase of roughly 5.5 % in overall project costs. Transitioning to green steel helps bypass carbon tariffs while insulating national projects from fossil fuel price volatility. Building on the taxonomy and stakeholder consultations, the Ministry undertook initial steps to institutionalise green steel public procurement mandates.

Source: The Hindu February 16, 2026 20:28 UTC