New Delhi, Oct. 19 -- India's secondary steel sector needs targeted financial support to help MSMEs adopt cleaner technologies and deepen decarbonisation, according to the Institute for Energy Economics and Financial Analysis (IEEFA).

The sector accounts for around 47 per cent of India's steel production and relies heavily on coal-based direct reduced iron (DRI). IEEFA noted that emission reduction gains from energy efficiency diminish as plants become more efficient, necessitating further measures.

The proposed National Strategy for Sustainable Secondary Steel (NSSS) could address financial and technological barriers to low-carbon production.

Existing Schemes Face Implementation Gaps

Government schemes support MSME energy efficiency,...