The Ministry of Steel, in collaboration with the Ministry of New and Renewable Energy, has invited proposals through an Expression of Interest (EOI) to support pilot projects using green hydrogen in India’s iron and steel sector. This move is part of the larger National Green Hydrogen Mission, which aims to position India as a global hub for clean energy while reducing carbon emissions across industries.
To implement the scheme, MECON Limited has been appointed as the Scheme Implementing Agency (SIA). The agency will oversee the execution and evaluation of the selected pilot projects. The initiative focuses on introducing cleaner technologies in one of the most carbon-intensive sectors of the economy.
The government has identified several key focus areas under this scheme. These include 100% hydrogen-based Direct Reduced Iron (DRI) production, hydrogen injection in existing blast furnaces to reduce coal consumption, and other innovative technologies that can help lower carbon emissions. These pilot projects are expected to demonstrate the technical and commercial feasibility of using green hydrogen in steel manufacturing.
For the current round of proposals, the government has allocated a remaining budget of around ₹290 crore. Financial assistance will be provided to selected projects, covering up to 50% of the total project cost. However, projects involving collaboration with academic or research institutions may receive higher support of up to 70%. This is aimed at encouraging innovation and research-driven solutions in the sector.
The scheme is open to a wide range of participants, including public sector undertakings, private companies, and research institutions. However, applicants must meet certain financial criteria. They are required to have a positive net worth and demonstrate a minimum average annual turnover of at least 40% of the proposed project cost over the past three financial years.
The EOI document was released on March 24, 2026. Interested bidders can download the document until April 8, 2026, by 2:00 PM IST. The deadline for bid submission is the same day at 3:00 PM IST, followed by the opening of technical bids at 4:00 PM IST. Submitted bids will remain valid for 120 days from the closing date.
Applicants are required to pay a non-refundable processing fee of ₹1,180, including GST. While there is no traditional Earnest Money Deposit mentioned, successful bidders must provide a Security Deposit in the form of a Bank Guarantee equal to 3% of the sanctioned financial assistance within two weeks of receiving initial approval. Additionally, those opting for advance funding must submit a Performance Bank Guarantee of 18% of the sanctioned amount.
Importantly, bidders will need to arrange their own hydrogen supply and land for the projects, as these costs are not covered under the government grant. All submissions must be made online through MECON’s e-portal, ensuring a transparent and streamlined application process.
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