NEW DELHI: The Union Budget 2026–27 has earmarked an outlay of ₹20,000 crore over five years to scale up Carbon Capture, Utilisation and Storage (CCUS) technologies across key emission-intensive sectors, including cement, steel, power, refineries and chemicals, as part of India’s roadmap towards net-zero emissions by 2070.
Announcing the measure on February 1, finance minister Nirmala Sitharaman said the CCUS initiative aligns with the national roadmap unveiled in December 2025 and aims to improve technology readiness and deployment at scale in industrial end-use applications. The allocation marks one of the most significant fiscal commitments towards industrial decarbonisation in India to date.
The cement industry, among the largest industrial emitters, is expected to be a key beneficiary of the programme. Arun Shukla, president and director, JK Lakshmi Cement, said the budget reinforces the government’s long-term development vision while signalling a sharper focus on sustainability. He noted that the emphasis on carbon capture reflects a decisive step towards enabling cleaner industrial growth alongside infrastructure expansion.
Industry bodies also highlighted the structural impact of the CCUS allocation. Parth Jindal, president, Cement Manufacturers’ Association (CMA), said the ₹20,000 crore outlay fundamentally alters the decarbonisation landscape for emission-intensive industries. He said CCUS is a critical enabler for large-scale emissions reduction in the cement sector and that the intervention directly addresses technology and cost challenges associated with adoption.
Jindal added that the cement industry, aligned with India’s net-zero target for 2070, views the budget support as essential for accelerating the deployment of CCUS solutions while continuing to meet the country’s long-term infrastructure requirements.
