Starting FY28, the Indian government plans to require green‑rated steel in all central projects and schemes where procurement exceeds ₹1 crore. The policy will run for eight years and aims to push sustainable infrastructure practices.
Draft rules propose that public agencies use at least 20% 3‑star, 5% 4‑star, and 1% 5‑star green steel in their purchases. This is a structured approach to reward greener steel options.
With public sector steel demand expected to grow from ~22% to 28% by 2030, producers that invest in green hydrogen, EAFs, or carbon capture will be better positioned to win contracts and access premium pricing.
Contractors and steel buyers must start verifying green‑steel credentials now. Procurement teams will have to work with suppliers who can provide certified, low‑carbon steel to meet evolving tender requirements.
Begin pre‑qualifying suppliers based on green ratings, follow BIS/MoSPI certification updates, and align procurement strategies to this long‑term, sustainability‑linked demand shift.