Tata Steel, JSW, and AM/NS Ramp Up Scrap Use Amid Green Steel Push.

As the government rolls out its green steel taxonomy, leading steelmakers are sharpening their focus on scrap-based production and expanding downstream infrastructure to align with the new environmental benchmarks.

Companies such as Tata Steel, ArcelorMittal, Nippon Steel, and JSW Steel are betting big on increasing the use of scrap in steelmaking, a move seen as critical to lowering carbon emissions. Alongside this shift, several players are setting up steel processing centres to improve scrap collection, sorting, and recycling efficiency.

The Centre has begun issuing green steel star ratings to producers based on the carbon intensity of their manufacturing processes. The rating framework is designed to nudge the industry toward cleaner production methods by offering graded recognition for lower emissions.

In the next phase, the government is also working on norms that would require public sector undertakings (PSUs) to mandatorily procure certified green steel for use in their projects, potentially creating assured demand for low-carbon steel.

The National Institute of Secondary Steel Technology, acting as the nodal agency, will assess emissions from steel-making processes and award three-, four-, and five-star ratings. The classification will be based on verified carbon emission levels, forming the backbone of India’s emerging green steel certification regime.