Small Indian steel firms could slash power bills and emissions by adopting renewables

A new report finds that India's smaller steel producers, which make up about 40% of crude steel output, could cut electricity costs by up to a third and markedly lower carbon emissions by switching to renewable power.

Researchers from a coalition that includes the Confederation of Indian Industry, WWF-India, Climate Catalyst and JMK Research released a report showing that small steel manufacturers in India could reduce their power bills by roughly 22 million to 24 million rupees annually, a cut of up to 34%, by moving to renewable electricity. Because electricity can represent up to 40% of operating costs, the shift would also dramatically cut the sector’s carbon footprint, which contributes about 12% of national emissions.

The authors suggest a cluster-based model where multiple firms co-invest in a shared renewable plant, spreading risk and lowering capital barriers. Currently, only around 11% of these smaller producers use clean power, lagging behind the country’s overall renewable mix. Industry leaders cite customer demand for low-carbon steel, but point to high capital costs, regulatory hurdles and inadequate grid infrastructure as obstacles. The transition is seen as vital for meeting India’s net-zero target by 2070 and avoiding upcoming European carbon taxes.