The Government of India has approved a fiscal framework to deploy advanced carbon capture, utilization, and storage (CCUS) systems nationwide.
Originally announced by Union Finance Minister Nirmala Sitharaman during the Union Budget 2026–27 in New Delhi, the policy moved into executive action in June 2026. The initial budget projection of ₹20,000 crore was formally refined to a final clearance of ₹19,700 crore following evaluation by the Expenditure Finance Committee (EFC) and the Ministry of Power under Joint Secretary Aadhar Raj.
The cleared public outlay is engineered to fundamentally rewrite the economics of industrial decarbonization in India over the next five years.
The implementation focuses on five core, high-emissions clusters where deep electrification or simple fuel-switching remains economically unviable.
The rollout bridges the gap between small-scale industrial pilot runs and commercial viability. Regionally, the program leverages the geographical advantages of western and mid-western India. According to geological assessments, India possesses over 350 gigatons of underground storage capacity within the saline aquifers of Gujarat and Rajasthan, as well as the stable basalt rock formations across Maharashtra and Madhya Pradesh. Basalt is particularly vital as it naturally mineralizes injected carbon dioxide into solid carbonates over time, eliminating the long-term risk of structural leakage.
The framework transitions from simple storage to a circular carbon capture and utilization economy. By combining captured CO₂ with green hydrogen produced via the National Green Hydrogen Mission, India can internally manufacture high-value green synthetic fuels, sustainable aviation fuel (SAF), and methanol, potentially reducing the national oil import bill by up to $46 billion annually.
The structural push provides heavy industry with a pragmatic pathway to sustain economic expansion while methodically honoring India’s sovereign commitment to achieve net-zero emissions by 2070.
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