The steel industry is seeking modifications to the renewable consumption obligation, or RCO, regime, arguing that current mandates are challenging and could impact their competitiveness.
The Steel Association outlined its key proposals, which include a reduction in the mandatory renewable energy share, the exclusion of electricity generated from waste heat gases from RCO calculations, and the removal of transmission losses from these calculations.
“The industry is committed to green technologies and renewable energy, but the current RCO targets pose substantial challenges to our operational viability and global competitiveness,” according to a report in The Economic Times.
According to sources cited by the newspaper, both the Ministry of Power and the Ministry of Steel are currently reviewing these proposals. The government’s assessment is expected to weigh the feasibility of the requested changes against their broader implications for the steel sector and India’s renewable energy goals.
It must be noted that the RCO regime is a governmental policy designed to encourage and enforce the adoption of renewable energy across various industrial sectors, including steel manufacturing.
Steel companies argue that the current RCO targets are too ambitious, potentially hindering their economic growth and global market competitiveness.
The ongoing review by the ministries underscores the government’s consideration of industry-specific challenges within the broader framework of its renewable energy agenda.
