The Indian government has approved a carbon capture, utilisation and storage (CCUS) scheme targeting an initial 7 MtCO2/year across hard-to-abate sectors, including power generation, iron and steel, cement, chemicals and refineries (India Times, 22/06/2026).
The INR197bn (USD2.1bn) programme targets the development of capture technologies and dedicated CCS infrastructure. It also includes an INR25bn (USD260mn) R&D fund to support domestic technologies such as chemical absorption and mineral carbonation. With private sector participation, the total investment pipeline could reach around INR375bn (USD4bn).
The fund was initially announced in India’s FY2026/27 budget and aims to bridge the gap between pilot projects and commercial-scale CCUS deployment, although it is still subject to approval from the Union Cabinet before its formal launch.
The initiative supports India’s industrial decarbonisation strategy, particularly in sectors where electrification and fuel switching remain difficult. It also aligns with the country’s target to reach net-zero emissions by 2070.
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