Centre proposes an outlay of Rs. 20,000 crore for CCUS to achieve net-zero

New Delhi: Union Finance Minister Nirmala Sitharaman proposed an outlay of ₹20,000 crore over the next five years for Carbon Capture, Utilization and Storage (CCUS) technologies, aimed at scaling up deployment and achieving higher readiness levels across end-use applications.

Finance Minister Nirmala Sitharaman made announced during the budget session 2026-2027, which will be applicable to five key industrial sectors, including power, cement, refinery, steel and chemicals.

The CCUS initiative, launched in 2025, will be scaled up with high readiness across key sectors including power, steel, cement, refineries and chemicals.

“I proposed an outlay of Rs 20,000 crore over the next 5 years in Carbon Capture Utilization and Storage (CCUS) technologies to scale up and achieve higher readiness levels in end-use applications across” Nirmala Sitharaman said.

The move is aimed at supporting India’s transition towards lower-carbon industrial and energy systems while enabling hard-to-abate sectors to cut emissions.

CCUS (Carbon Capture, Utilisation, and Storage) is a critical pillar for India to achieve net-zero by 2070, essential for decarbonizing hard-to-abate sectors like steel, cement, and refineries while enabling a clean transition for existing coal-based power plants. It facilitates the creation of a circular economy by turning CO2 into value-added products like chemicals and fuels. 

As part of efforts to promote environmentally sustainable cargo movement, the Finance Minister announced plans to establish new dedicated freight corridors connecting Dankuni in the east to Surat in the west. The government will also operationalise 20 new waterways over the next five years, starting with National Waterway 5 in Odisha.

Carbon Capture, Utilization, and Storage (CCUS) is a critical climate mitigation technology that captures carbon dioxide emissions from large industrial sources (power plants, refineries) to either reuse them or store them in deep underground geological formations. It is essential for reducing emissions in hard-to-abate sectors and achieving net-zero goals.