ASSOCHAM seeks incentives for hydrogen-based  steelmaking, green finance in FY27 Budget

Key Highlights

• The industry body noted that decarbonisation presents both a challenge and a competitive opportunity, asserting that these measures can accelerate sustainable production.
• ASSOCHAM further pitched for incentivising scrap collection and recycling, noting that strengthening domestic recycling infrastructure through skilling is essential to reduce the country’s dependence on imports.
• Highlighting the challenges, Assocham pointed out that despite being the world’s second-largest steel producer after China and maintaining a healthy growth rate of 8-9 per cent, the sector is facing significant headwinds.
• Elevated input costs of key raw materials, a depreciating rupee, and heavy reliance on imported coking coal — due to negligible domestic mineable reserves — remain major pain points.
• Furthermore, the chamber stated that iron ore production has been stagnant, and many of the auctioned mines are yet to start production.