Centre plans Rs 38,900 crore carbon capture programme

The central government is preparing a carbon capture, utilisation, and storage (CCUS) programme estimated at Rs 38,900 crore, with Rs 19,500 crore to be committed from public funds. The balance is expected to be raised through bank loans and multilateral financing.

According to officials, the programme will be structured into multiple sub-schemes. Research and development projects may receive full government support, while other initiatives could be funded between 40 and 50 percent. Semi-commercial projects may qualify for complete financing, whereas lab-scale projects are likely to receive partial backing.

The initiative will be implemented in phases, beginning with a six-year first phase. It is expected to focus on carbon-intensive sectors such as power, steel, cement, chemicals, coal gasification, and green hydrogen.

Industry experts noted that while CCUS is currently expensive, costs may decline with scale. With India projecting 97 GW of coal-based capacity by 2032, the technology is considered critical for emission reduction.

The programme is also expected to include geological sequestration for permanent storage, alongside utilisation technologies. It forms part of India’s broader climate commitments to reduce emissions by half by 2050 and achieve net zero by 2070.