Pariksha SaathiPIB backgrounder on Carbon Capture, Utilisation and Storage (CCUS): Rs 20,000 crore over five years for CCUS under the Union Budget 2026-27 CCUS Scheme
A PIB backgrounder of 27 October 2026 describes Carbon Capture, Utilisation and Storage (CCUS) - capturing carbon dioxide from industrial sources before it is released into the atmosphere, then using it productively or storing it securely underground - as an important pathway for reducing emissions from hard-to-abate sectors and for supporting India's Net Zero by 2070 vision. NITI Aayog identifies CCUS as critical for decarbonising steel, cement, oil and gas, petrochemicals, chemicals and fertilisers; according to the backgrounder, emissions from hard-to-abate sectors and thermal power generation are expected to reach nearly 2,300 million tonnes per annum by 2030, and fossil-fuel-based sources accounted for 45.12% of India's installed power capacity as of August 2026. Captured carbon dioxide can be used in enhanced oil recovery, food and beverages, urea, green methanol and concrete, or stored permanently in depleted oil and gas reservoirs, deep saline aquifers and basaltic rock formations. The Department of Science and Technology's CCUS Roadmap 2025 identifies potential cluster regions such as the Gujarat coast, the Odisha-Jharkhand belt and Northeast India. The backgrounder lists the CCUS Scheme announced in the Union Budget 2026-27 in February 2026, under which the Ministry of Finance allocated Rs 20,000 crore over five years for CCUS in five sectors - power, steel, cement, refineries and chemicals; NITI Aayog's CCUS policy framework report (November 2022); the National CCUS Centres set up in 2022 at IIT Bombay and JNCASR, Bengaluru; and India's first integrated CCUS Field Laboratory at IIT Bombay, inaugurated in May 2026, which can capture up to 3 tonnes of carbon dioxide per day. As of April 2026, three CCU projects were operational, six were under construction or execution and sixteen were at the proposed stage.
Drafted with AI assistance from the official PIB release linked above and checked against it by a second AI pass. Not line-edited by a human.
Learning context
NITI Aayog released the study report 'Carbon Capture, Utilisation, and Storage Policy Framework and its Deployment Mechanism in India' on 29 November 2022. It examines CCUS as an emission reduction strategy for deep decarbonisation of hard-to-abate sectors and outlines the policy interventions needed across sectors. Writing in November 2022, the release cited the targets of India's NDC as then updated - 50% of total installed capacity from non-fossil-based energy sources and a 45% reduction in emission intensity, both by 2030 - and its steps towards Net Zero by 2070. The report estimated that about 750 mtpa (million tonnes per annum) of carbon capture by 2050 could create about 8-10 million jobs on a full-time-equivalent basis, and listed uses of captured carbon dioxide such as green urea, food and beverages, building materials (concrete and aggregates), chemicals (methanol and ethanol), polymers including bio-plastics, and enhanced oil recovery.
Check yourself: when did NITI Aayog release its CCUS policy framework report, and how many jobs did it estimate about 750 mtpa of carbon capture by 2050 could create?
On 29 November 2022; about 8-10 million jobs (full-time equivalent).
Revision task: from this release, note what CCUS is, the hard-to-abate sectors NITI Aayog names, the Budget 2026-27 CCUS allocation and its five sectors, where India's first integrated CCUS Field Laboratory is and the cluster regions in DST's roadmap; from the note, when NITI Aayog's CCUS report came out, the 2030 NDC targets its 2022 release cited and the Net Zero year.
Test yourself
According to PIB's backgrounder of 27 October 2026, how much did the Ministry of Finance allocate over five years under the CCUS Scheme announced in the Union Budget 2026-27 to promote carbon capture, utilisation and storage?
Show the answer
Answer: Rs 20,000 crore
Under the CCUS Scheme, announced in the Union Budget 2026-27 in February 2026, the Ministry of Finance allocated Rs 20,000 crore over five years to promote carbon capture, utilisation and storage in five major industrial sectors: power, steel, cement, refineries and chemicals.
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