**Summary:**
The Ministry of Steel has been allocated Rs. 455 Crore under the National Green Hydrogen Mission to implement pilot projects focused on hydrogen utilization in the iron and steel sector. To date, five pilot projects have been awarded, including one in Bokaro, Jharkhand. These projects aim to substitute natural gas with hydrogen in DRI production and inject hydrogen into blast furnaces to decrease coal and coke consumption. The overall completion timeline for the pilot projects extends to Financial Year 2029-30, with the Bokaro project slated for completion by October 2026. As of August 5, 2025, the projects are in the design and engineering stages and have not yet commenced hydrogen-based production. MECON Ltd, a CPSE under the Ministry of Steel, serves as the Scheme Implementing Agency, responsible for the regular monitoring of the pilot projects. Further monitoring is conducted by a Project Appraisal Committee and a Steering Committee. Industry-wide emission reduction targets for the steel sector for the years 2025-26 and 2026-27 have been established by the Ministry of Environment, Forest and Climate Change (MoEFCC) via notification No. G.S.R. 405(E) dated June 23, 2025, which can be found on the MoEFCC website.
Key Entities Referenced
National Green Hydrogen Mission: A government initiative by the Ministry of New and Renewable Energy to promote the use of green hydrogen in various sectors, including the steel industry.
Ministry of Steel: The Indian government ministry responsible for the development of the steel industry, allocated Rs. 455 Crore for hydrogen pilot projects.
Lok Sabha: The lower house of the Parliament of India, where the starred question regarding the National Green Hydrogen Mission was addressed.
Jharkhand: A state in India where a pilot project under the National Green Hydrogen Mission is being implemented in Bokaro.
Bokaro, Jharkhand: A city in the state of Jharkhand where a specific pilot project under the National Green Hydrogen Mission is being implemented, scheduled for completion by October 2026.
MECON Ltd: A Central Public Sector Enterprise (CPSE) under the Ministry of Steel, serving as the Scheme Implementing Agency for the pilot projects.
Ministry of Environment Forest Climate Change (MoEFCC): The Indian government ministry that has set Green House Gases emission targets for the steel sector.
Green House Gases: Gases that trap heat in the atmosphere and contribute to global warming.
GOVERNMENT OF INDIA
MINISTRY OF STEEL
LOK SABHA
STARRED QUESTION NO. *235
FOR ANSWER ON 05.08.2025
NATIONAL GREEN HYDROGEN MISSION IN STEEL SECTOR
*235. SHRI DINESHBHAI MAKWANA:
MS. BANSURI SWARAJ:
Will the Minister of STEEL be pleased to state :
(a) the details of total budgetary support allocated to the Steel sector under the
National Green Hydrogen Mission and the manner in which it is proposed to be utilised;
(b) the number and nature of pilot projects sanctioned under the Mission since its
inception;
(c) the timeline for implementation and the details of monitoring mechanism for the
pilot projects approved under the Mission especially in Jharkhand;
(d) the number of Steel plants applying for incentives under the Mission;
(e) whether any green hydrogen blending pilots have commenced production, if so,
the details thereof; and
(f) the details of industry wide targets set for emissions reduction between 2025–27?
ANSWER
THE MINISTER OF STEEL (SHRI H.D. KUMARASWAMY)
(a)to(f): A statement is laid on the Table of the Lok Sabha.
*****STATEMENT REFERRED TO IN REPLY TO PARTS (A)TO(F) OF THE LOK SABHA
STARRED (*) QUESTION NO. *235 FOR ANSWER ON 05.08.2025 TABLED BY
SHRI DINESHBHAI MAKWANA & MS. BANSURI SWARAJ, MEMBER OF
PARLIAMENT REGARDING “NATIONAL GREEN HYDROGEN MISSION IN STEEL
SECTOR”
(a)to(e): Ministry of Steel has been allocated Rs. 455 Crore for implementation of
pilot projects for use of hydrogen in iron and steel sector under National Green
Hydrogen Mission launched by Ministry of New and Renewable Energy. Ministry of
Steel has awarded 05 pilot projects for use of hydrogen in steel sector including one
project at Bokaro in Jharkhand. These projects focus on partial substitution of natural
gas with hydrogen in vertical shaft-based DRI production, and injection of hydrogen
into existing blast furnaces to reduce coal and coke consumption. The completion
timeline for the overall set of pilot projects is till Financial Year 2029–30. However, the
project being implemented in Bokaro, Jharkhand, is scheduled for completion by
October, 2026. These pilot projects are at design and engineering stages and have
not commenced production by using hydrogen based technology. MECON Ltd, a
CPSE under Ministry of Steel, is the Scheme Implementing Agency and do the regular
monitoring of pilot projects. Project Appraisal Committee and Steering Committee
have also been constituted for periodic monitoring of the pilot projects.
(f) Ministry of Environment Forest & Climate Change (MoEF&CC) vide notification
No. G.S.R. 405(E) dated 23.06.2025 has given Green House Gases emission target
for the year 2025-26 & 2026-27 for obligated entities of steel sector. The notification
is available on MoEF&CC website at URL
https://moef.gov.in/storage/tender/1750856052.pdf.
******