Budget 2026-27: Rs 20,000 Crore for Carbon Capture (CCUS)
Why in the news
The Union Budget presented on 1 February 2026 proposed an outlay of Rs 20,000 crore over five years for Carbon Capture, Utilisation and Storage (CCUS), a climate-technology push for heavy industry.
Key facts
- Outlay: Rs 20,000 crore, spread across five years.
- Sectors: power, steel, cement, refineries and chemicals.
- Hubs: clusters being developed in Gujarat and Odisha, where several industries can share CO2 transport and storage facilities.
| Item | Detail |
|---|---|
| Outlay | Rs 20,000 crore |
| Period | Five years |
| Hub states | Gujarat and Odisha |
About CCUS
CCUS covers technologies that capture carbon dioxide from large point sources or directly from the air. The gas is compressed and moved, then either used in products or locked away in geological formations. Related efforts include a NITI Aayog policy framework with viability gap funding, a Green Steel Taxonomy (steel under 2.2 tCO2e per tonne counts as green), and national centres of excellence at IIT Bombay and JNCASR, Bengaluru.
Exam angle
- Note the Rs 20,000 crore figure and the five-year period.
- Memorise the five sectors and the two hub states.
- Expand CCUS correctly: Carbon Capture, Utilisation and Storage.