Green steel mandate could reshape public procurement: Study

India is well prepared to adopt Green Public Procurement (GPP) for steel if it is mandated, a new industry readiness assessment has found, adding that such a move could create the country’s first large-scale, assured market for certified low-carbon steel starting in FY2028.

The report, developed by the Confederation of Indian Industry (CII)–Green Business Centre and supported by Climate Catalyst, notes that public procurement in India accounts for ₹45–50 lakh crore annually.

The study finds that even a modest mandate of 26% could unlock up to 16 million tonnes of certified green steel from primary and secondary producers by FY2030, while accelerating India’s industrial decarbonisation and reinforcing its global competitiveness.

The report draws on inputs from some of India’s largest manufacturers and steel buyers, including 28 producers representing 88 million tonnes per annum (MTPA) of crude steel capacity and 12 major public procurers.

It states that 93% of producers (26 out of 28 surveyed) are ready to supply certified green steel at scale, contingent upon a notified mandate and transparent cost recovery through mechanisms such as a premium, GST concessions, or carbon credit offsets.

Introducing a green steel mandate also presents a fiscal opportunity, particularly as the Union Budget has strengthened India’s infrastructure push by raising public capital expenditure to ₹12.2 trillion for FY2026–27.

With such elevated public spending, the study suggests that shifting even a portion of steel demand to certified green steel could deliver substantial long-term emissions savings and enhance manufacturing competitiveness, while only marginally increasing overall project costs.

The report argues that the mandate would not be an added burden, but rather a step toward future-proofing public infrastructure, maximising the value of capital investments, and avoiding costly retrofits later.

K S Venkatagiri, Executive Director, Confederation of Indian Industry and Chairman of the Global Ecolabelling Network Board, said, “Green Public Procurement can play an important role in helping India’s steel sector move toward lower-carbon production.”