Govt mulls Rs 20,000-cr framework to boost carbon capture, utilisation and storage tech

Business 17 Jun, 2026

Govt mulls Rs 20,000-cr framework to boost carbon capture, utilisation and storage tech

Business To Business, New Delhi, 17^th June, 2026: The Union Cabinet is considering a ₹20,000-crore framework for Carbon Capture, Utilisation and Storage (CCUS) technologies over the next five years, signaling a major push toward low-carbon industrial development and climate mitigation.
Speaking at a seminar on CCUS organized by the PHD Chamber of Commerce and Industry, Aadhar Raj emphasized the need for policy support, institutional mechanisms, and strategic investments to help emerging clean-energy technologies scale up.
CCUS refers to technologies that:

Capture carbon dioxide (CO₂) emissions from industrial facilities and power plants.
Utilise the captured carbon in products such as chemicals, fuels, and construction materials.
Store the carbon underground in geological formations to prevent its release into the atmosphere.

The proposed ₹20,000-crore initiative is expected to help:

Accelerate deployment of CCUS projects.
Support research and innovation.
Create pilot and commercial-scale carbon management facilities.
Develop supporting infrastructure and regulatory frameworks.
Encourage private-sector participation and investment.

India faces the dual challenge of maintaining economic growth while reducing emissions. CCUS is seen as particularly important for sectors where emissions are difficult to eliminate, including:

Steel manufacturing.
Cement production.
Fertilizer plants.
Oil refining.
Thermal power generation.

According to Raj:
CCUS offers India an opportunity to balance economic development with its climate commitments.
He stressed that cooperation among government agencies, industry, researchers, and investors will be necessary to create commercially viable carbon-management solutions capable of supporting India's long-term decarbonization goals.
CCUS is increasingly being viewed globally as a complementary technology to renewable energy and energy efficiency measures. For India, it could help:

Reduce emissions from existing industrial assets.
Support the transition to a low-carbon economy.
Maintain industrial competitiveness.
Contribute to the country's net-zero emissions target.

If approved, the proposed framework would represent one of India's most significant investments in carbon-management technologies and could accelerate the commercialization of CCUS solutions across key sectors of the economy.