New Delhi: Industry leaders and ratings agencies said the government’s decision to allocate Rs 20,000 crore for Carbon Capture, Utilisation and Storage (CCUS) in Budget 2026-27 reflects a decisive shift toward addressing emissions from hard-to-abate sectors.
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“The Rs 20,000 crore allocation for CCUS encourages low-carbon technology adoption in hard-to-abate sectors,” said Sheetal Sharad of ICRA ESG Ratings Limited, adding that the move strengthens India’s climate mitigation framework.
In the Budget speech, Sitharaman said CCUS technologies would be deployed at scale across five industrial sectors — power, steel, cement, refineries and chemicals — in line with the roadmap launched in December 2025. The proposed outlay of Rs 20,000 crore will be spread over five years to raise technology readiness and enable commercial applications.
Dr Faruk G Patel, Founder, Chairman and Managing Director of KP Group, said the announcement underscores the government’s intent to pursue multiple decarbonisation routes. “Additionally, a Rs 20,000 crore incentive scheme for carbon capture and storage technologies was unveiled, underscoring the focus on broad decarbonisation pathways,” Patel said.
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Prashant Mathur of Saatvik Green Energy said CCUS, alongside renewables and nuclear, reflects a pragmatic policy approach. “The continued focus on carbon capture technologies and long-term support for nuclear power underline a technology-agnostic approach to decarbonisation,” he said, adding that such clarity enables industry to plan investments across sectors with structurally high emissions.