AM/NS India Leads the Way in Green Steel Transition with ₹60,000 Cr Investment

ArcelorMittal Nippon Steel India (AM/NS India) is strategically positioning itself to play a leading role in India’s green steel transition, in line with the forthcoming Green Steel Taxonomy that will come into effect in FY 2026–27. With a robust manufacturing footprint, aggressive decarbonisation targets, and significant investments, AM/NS India is poised to become the first integrated steel producer in the country to achieve a three-star rating under the new framework.

To support this transition, AM/NS India has announced a ₹60,000 crore Phase-I capital investment aimed at aligning its operations with the government’s green steel benchmarks. This move underscores the company’s readiness to deliver a substantial share of low-carbon steel and its leadership in India’s decarbonisation journey.

The Green Steel Taxonomy, published in December 2024 by the Ministry of Steel, sets clear definitions and standards for low-emission steel production to support India’s broader climate commitments. Under this framework, steel must be produced with less than 2.2 tonnes of CO₂ equivalent (CO₂e) emissions per tonne of finished steel (tfs) to qualify as green. Such steel will be rated on a three-tier system—three-star, four-star, or five-star—based on emissions intensity, with five stars denoting the greenest steel.

The National Institute of Secondary Steel Technology (NISST) has been designated as the nodal agency to verify green steel production by various manufacturers. This will ensure credibility and consistency in implementation as India pushes toward a more sustainable steel sector.

AM/NS India is well-placed to meet these benchmarks, having already achieved a carbon intensity of 2.17 tCO₂ per tonne of crude steel (tcs) in FY 2023—14% below the national average. Since 2015, the company has reduced its emissions intensity by over 35%, and it now aims to achieve a further 20% reduction from its 2021 baseline, targeting 1.8 tCO₂/tcs by 2030.

Currently, 65% of AM/NS India’s steelmaking capacity comes through the Direct Reduced Iron (DRI) route, which uses natural gas—a significantly lower-carbon process compared to conventional methods. Its expansion projects incorporate advanced technologies focused on further reducing carbon emissions.

Several ongoing and planned initiatives reinforce AM/NS India’s commitment to green steel:

• A renewable hybrid energy project in Kurnool, Andhra Pradesh, developed by AM Green Energy, will supply clean power to the company’s flagship Hazira plant in Gujarat. This includes co-located pumped hydro storage to ensure reliability and environmental benefits.
• An operational scrap processing facility in Khopoli, Maharashtra, along with three upcoming centers, will scale up the use of recycled materials, further reducing carbon intensity.
• Digitisation and machine learning are being employed across operations to enhance efficiency and cut down energy and raw material consumption.

Reflecting on India’s readiness for this transition, Ranjan Dhar, Director & Vice President - Sales & Marketing, AM/NS India, said, “India is certainly getting prepared. With any new initiative, we need to take the lead—and electric mobility is a good reference point. Particularly in the two-wheeler segment, the shift towards green mobility has been massive. It’s natural that this segment would be the first to embrace such transitions.”

At the time of the Taxonomy’s launch, Steel Secretary Sandeep Poundrik highlighted its binding nature, “Adopting the Taxonomy of Green Steel is not optional; it is a mandate. This will help reduce the emission intensity to 2.2 tCO₂ per tonne by 2030, ensuring global competitiveness and growth.”

While acknowledging the cost implications of green steel, AM/NS India believes the long-term value and early mover advantage outweigh the initial premium. “The biggest promotion of our green steel is that we’ll be the first company to qualify for the three-star rated steel,” said Ranjan Dhar. “It shows that the solution is already available through AM/NS. I would encourage stakeholders to start preparing their projects now so they’re ready to adopt our green steel next year.”

Dilip Oommen, Chief Executive Officer of AM/NS India, said, “As India works toward its net-zero target by 2070, the world’s first green steel taxonomy offers a decisive roadmap for the industry. AM/NS India is fully aligned with this vision, and our ongoing initiatives give us the confidence that we’ll be ready when the taxonomy is enforced.”

By delivering low-carbon and specialised steel products, AM/NS India is enabling its customers to meet global standards, compete in international markets, and contribute to a greener value chain—cementing its leadership as one of India’s most carbon-efficient steelmakers.