AI and Green Transition Take Center Stage at Steel Conclave 2025 for a Sustainable Future

Steel Conclave 2025: Driving Growth with AI and Green Transition

The steel industry is set to convene on September 8-9 in the national capital for the two-day Steel Conclave 2025. Key stakeholders, including Union Steel Minister H D Kumaraswamy and Minister of State for Heavy Industries and Steel Bhupathiraju Srinivasa Varma, will focus on strategies to boost the sector's growth. Central to the discussions will be the integration of artificial intelligence (AI) in the steel value chain, financing green transition, and improving raw material availability.

Strategic Focus Areas for the Steel Sector

The Indian Steel Association (ISA) highlighted that leadership for industry growth, leveraging AI, increasing iron ore availability to support self-reliance (Aatmanirbharta), and financing the shift to sustainable steel production will be prioritized. Additional topics include decarbonisation measures, price risk management, and improving logistics and infrastructure efficiency.

ISA President Naveen Jindal emphasized the goal of building a resilient steel sector that can compete internationally while meeting sustainability requirements.

Government Support Accelerates Green Energy Adoption

The government’s recent cut in GST on renewable energy products from 12% to 5% is expected to accelerate the industry’s transition to cleaner energy. This move will reduce reliance on coal-based power, which currently accounts for about 85% of the steel industry’s energy consumption and is a major contributor to its carbon emissions.

The steel sector uses roughly 20% of India's total industrial energy, so this tax reduction can lead to significant emission cuts. Fujiyama Power Systems noted that lowering costs for rooftop solar installations will encourage faster adoption across residential, commercial, and institutional sectors. This aligns with India’s net zero commitments and supports schemes like the PM Surya Ghar Muft Bijli Yojana.

Why Finance Professionals Should Watch This Space

• Investment Opportunities: Financing the green transition in steel opens new avenues for sustainable investment products and credit models.
• Risk Management: Price volatility in raw materials and energy costs will require sophisticated risk mitigation strategies.
• AI Integration: Adopting AI tools can optimize supply chains and operational efficiencies, influencing capital allocation and forecasting.

For finance professionals interested in how AI is transforming traditional industries like steel, exploring specialized AI courses can provide practical insights. Resources such as AI tools for finance offer targeted knowledge on applying AI in financial contexts.

The Steel Conclave 2025 will likely set the tone for how India’s steel sector balances growth with sustainability, presenting both challenges and opportunities for financial stakeholders.