By: ICN Bureau
Last updated : February 01, 2026 5:32 pm
The primary goal is to scale up CCUS technologies, making them commercially viable and ready for wide-scale industrial application
In the Union Budget 2026-27 presented on February 1, 2026, Finance Minister Nirmala Sitharaman announced a major outlay of Rs. 20,000 crore to promote Carbon Capture, Utilisation, and Storage (CCUS) technologies over the next five years. This initiative is a cornerstone of India's strategy to decarbonise its "hard-to-abate" industrial sectors while maintaining economic growth.
The scheme specifically covers five emission-heavy industries: Power, Steel, Cement, Refineries, and Chemicals.
The primary goal is to scale up CCUS technologies, making them commercially viable and ready for wide-scale industrial application.
The budget outlines the creation of a dedicated mission to accelerate carbon reduction, de-risk early-stage private investments, and promote the reuse of captured carbon in producing methanol, urea, and synthetic fuels.
This move supports India's climate commitments, including the goal to reduce carbon emissions intensity by 50% by 2050 and achieve Net Zero by 2070.