The Centre is preparing a carbon capture, utilisation, and storage (CCUS) programme estimated at Rs 38,900 crore, with the government expected to commit Rs 19,500 crore.

The balance is likely to be raised through bank loans and multilateral funding. "The scheme will have various sub schemes, some of which may get 100% government support like that of R&D. In others, it varies from 40% to 50%," a government official said. Another official added that semi-commercial projects may secure full financing, while lab-scale projects could get partial support. The initiative, expected to roll out in multiple phases starting with a six-year first phase, will target carbon-intensive industries such as power, steel, cement, chemicals, coal gasification, and green hydrogen.

CCUS, though expensive, could become cost-effective with scale, industry experts noted. With India planning 97 GW of coal-based power by 2032, the technology is deemed vital for emission reduction. The programme may also employ geological sequestration for permanent carbon storage, complementing utilisation technologies. India aims to halve emissions by 2050 and reach net zero by 2070.