The Ministry of Steel, in partnership with the Ministry of New and Renewable Energy (MNRE), has invited Expressions of Interest (EOI) for pilot projects that will introduce green hydrogen into India’s iron and steel sector. The initiative is being implemented under the National Green Hydrogen Mission and aims to reduce the industry’s dependence on fossil fuels while lowering carbon emissions. The pilot projects are expected to help the country move toward cleaner steel production by testing hydrogen-based technologies in real industrial conditions.
MECON Limited has been appointed as the Scheme Implementing Agency (SIA) and will be responsible for managing the selection, implementation, and monitoring of the pilot projects. The main purpose of the scheme is to evaluate whether hydrogen can be used efficiently and economically in steel manufacturing. The projects will generate practical experience that can support the future commercial adoption of green hydrogen technologies across the sector.
The scheme focuses on four major technology areas. These include the development of 100 percent hydrogen-based Direct Reduced Iron (DRI) production, blending hydrogen in existing blast furnaces, partial hydrogen injection in vertical shaft DRI units, and other innovative technology solutions that can help reduce carbon emissions in steel production. The government has kept the scheme technology-neutral to encourage new and advanced approaches for decarbonizing the industry.
Financial support under the scheme will mainly cover capital equipment required for the pilot projects. The government will provide up to 50 percent of the total project cost for standard blast furnace and DRI modification projects. This support can increase to 70 percent if the project is implemented by a consortium that includes secondary steel industries, independent steel producers, or academic and research institutions. The National Green Hydrogen Mission has allocated a total budget of ₹455 crore for the steel sector, of which around ₹290 crore is available for allocation in the current round.
The EOI process follows a fixed schedule. Interested applicants can download the EOI documents from June 29, 2026. The document download period will close on July 20, 2026, at 2:00 PM IST. Online bids must be submitted through MECON’s e-portal by 3:00 PM IST on the same day. Techno-commercial bids will be opened at 4:00 PM IST on July 20, 2026. Submitted bids must remain valid for 120 days from the date of submission. Selected agencies will have a maximum period of 36 months from the issue of the In-Principle Approval Letter to complete their pilot projects.
Applicants are required to pay a non-refundable EOI processing fee of ₹1,180, including GST. No separate Earnest Money Deposit has been specified. However, selected applicants must submit a Performance Bank Guarantee equal to 3 percent of the sanctioned Central Financial Assistance within two weeks of project approval. Those seeking an advance payment of 18 percent after DPR approval must also provide an equivalent advance Bank Guarantee. Government academic institutions and research laboratories leading consortiums are exempt from these bank guarantee requirements.
Discover more from SolarQuarter
Subscribe to get the latest posts sent to your email.
