India Advances Rs 19,700 Crore Carbon Capture Scheme for Hard-to-Abate Sectors

India is advancing one of its most significant industrial decarbonisation efforts yet, with a proposed carbon capture, utilisation and storage (CCUS) support scheme valued at around Rs 19,700 crore. According to sustainability-sector reporting, the plan is designed to tackle emissions in industries where conventional cuts are hardest to achieve.

Targeting hard-to-abate industries

The scheme focuses on so-called hard-to-abate sectors, including steel, cement, power generation and refining. These industries are essential to India's growth but are also among the most carbon-intensive, relying on high-temperature processes and fossil inputs that cannot be easily electrified or replaced with renewables.

For such sectors, capturing carbon dioxide at the source and either storing it underground or converting it into usable products offers one of the few viable routes to deep emissions reductions without halting production.

Why incentives matter

Carbon capture remains expensive and commercially unproven at scale in India, which is why a dedicated support mechanism is seen as pivotal. A funding push of this size could help de-risk early projects, attract private investment and build the supply chains, infrastructure and technical expertise the technology requires.

The proposal aligns with India's broader climate commitments, including its long-term net-zero ambitions, by giving heavy industry a practical pathway to lower its footprint while remaining globally competitive.

Challenges ahead

Significant hurdles remain. CCUS deployment depends on suitable geology for storage, robust monitoring, and clear policy and pricing signals to make captured carbon economically worthwhile. The scheme's eventual design, including how incentives are structured and disbursed, will determine whether it can move from proposal to working projects.

• The proposed CCUS support scheme is worth about Rs 19,700 crore.
• It targets hard-to-abate sectors: steel, cement, power and refining.
• Carbon capture is among the few options for cutting emissions in these industries.
• The funding aims to de-risk early projects and attract private investment.
• Success depends on storage geology, monitoring and clear policy signals.

“Hard-to-abate sectors need targeted support to make carbon capture commercially viable at scale.”

— Sustainability-sector analysts

If implemented effectively, the scheme could position India as an emerging player in industrial carbon management. The coming months will reveal how the proposal is finalised and whether it can translate ambition into the first generation of large-scale capture projects on Indian soil.

The NE Times View

Subsidising carbon capture for steel, cement and refining is a pragmatic admission that these sectors cannot decarbonise on renewables alone. The risk is that Rs 19,700 crore becomes a lifeline for polluters rather than a bridge to genuine cuts; the scheme must reward captured tonnes, not promises. India should insist on transparent monitoring before scaling a technology that has disappointed elsewhere.

This article is original commentary and analysis by The NE Times. Background facts were referenced from The Economic Times.