The Indian government plans to mandate the use of green-rated steel in all public infrastructure projects starting from the financial year 2028. The proposal includes minimum procurement targets: 20% for 3-star rated steel, 5% for 4-star, and 1% for 5-star rated steel.

This move aims to drive demand for green steel in public procurement, which currently accounts for around 22% of India’s total steel consumption. The initiative aligns with the Centre’s broader commitment to decarbonising the steel sector and achieving sustainability goals.

According to industry estimates, public sector steel consumption may rise to 28% by the fiscal year 2030. At present, procurement is largely cost-based, without considering environmental impact. Officials noted that mandating green-rated steel could enhance sustainability without significantly increasing overall costs.