MECON Sets April 8, 2026, Deadline for Green Hydrogen Pilot Project Proposals in Steel Sector

Executive Summary of the MECON Expression of Interest (EoI)

MECON Limited, a Government of India Enterprise acting as the Scheme Implementing Agency (SIA) on behalf of the Ministry of Steel (MoS), has issued an Open Tender Enquiry (EOI No. 11.51.91C0/EOI/Hydrogen/04) to implement pilot projects for the utilization of Green Hydrogen in the Iron & Steel sector. Conducted under the framework of the National Green Hydrogen Mission (NGHM), the initiative seeks to validate the technical feasibility, safety, and economic viability of hydrogen-based steelmaking in real-world operational environments. This solicitation aims to advance industrial decarbonization and reduce reliance on fossil fuel feedstock. All formal bid proposals must be submitted via the authorized e-portal by the deadline of April 8, 2026, at 15:00 IST.

Project Scope: Technological Focus Areas and Thrust Schemes

The Ministry has defined four distinct thrust areas for the deployment and validation of hydrogen technologies. Proposals must address one of the following schemes:

• Scheme-A: Pilot project to produce Direct Reduced Iron (DRI) using 100% Hydrogen via a vertical shaft reactor.
• Scheme-B: Use of Hydrogen in existing Blast Furnaces (BF) to reduce coal and coke consumption.
• Scheme-C: Injection of Hydrogen into existing vertical shaft-based DRI units to partially substitute Natural Gas or other reducing gases, with an objective of gradual maximization of hydrogen proportions.
• Scheme-D: Innovative and technology-agnostic applications of hydrogen for carbon emission reduction in Iron & Steel production.

Funding Framework and Budgetary Allocation

The National Green Hydrogen Mission has allocated a total budgetary outlay of ₹455 crore for the steel sector through FY 2029-30. Following previous project awards, approximately ₹290 crore is currently available for this round. Financial assistance (Central Financial Assistance or CFA) covers capital equipment and the cost of Detailed Project Report (DPR) preparation, but excludes land acquisition, taxes, duties, and hydrogen production costs.

*Higher funding of 70% is restricted to Scheme-A and Scheme-D for consortiums involving Independent Steel Producers (ISPs), DRI industry associations, or R&D/Academic institutions.

Eligibility and Selection Criteria for Bidders

Proposals are invited from Public Sector Undertakings (PSUs), private companies, and research institutions. Bidders must satisfy technical and financial benchmarks to qualify for evaluation.

Technical Eligibility Bidders, or at least one member of a consortium, must have owned and operated at least one facility in India within the last 10 years. Eligible facility types include Blast Furnaces (BF), Direct Reduced Iron (DRI) plants, Electric Arc Furnaces (EAF), Induction Furnaces (IF), Submerged Electric Arc Furnaces (SEAF), agglomeration facilities, or rolling mills.

Financial Eligibility

• Net Worth: Bidders and all consortium members must maintain a positive net worth as of March 31, 2025.
• Turnover: Minimum average annual turnover of 40% of the project cost during the last three consecutive financial years ending March 31, 2025.
• Exemptions: Government academic or research organizations are exempt from financial criteria if they serve as the Consortium Leader.

Consortium Rules Consortiums are permitted for Scheme-A and Scheme-D. While foreign companies may participate as members, they are prohibited from acting as the Consortium Leader. The leader must be a Government body or the member with the highest share of work in value terms.

Selection and Ranking System Proposals will be evaluated and ranked based on a 100-mark scoring matrix:

• Installed Units in India: Max 20 marks (10 for single, 20 for multiple).
• Plant Capacity in India: Max 20 marks (10 for ≤1 MTPA, 20 for >1 MTPA).
• Research Output: Max 20 marks for publications and 20 marks for patents in the Iron & Steel sector.
• Financial Strength: Max 10 marks for turnover relative to project cost.
• CFA Requirement: Max 10 marks (10 marks for seeking ≤50% CFA; 5 marks for >50% to 70%).

Official Timeline and Submission Protocol

Bidders must submit technical and commercial bids separately through the MECON e-portal.

1. Submission Deadline: April 8, 2026, at 15:00 IST.
2. Bid Opening (Techno-Commercial): April 8, 2026, at 16:00 IST.
3. Processing Fee: ₹1,180 (including 18% GST) per part, payable online to M/s Central Electronics Limited.
4. Completion Window: Maximum 36 months from the date of In-Principle Approval.
5. Validity of Proposal: 120 days from the bid opening date.

Important Dates

• EoI Release Date: March 24, 2026
• Submission Deadline: April 8, 2026 (15:00 IST)
• Techno-Commercial Bid Opening: April 8, 2026 (16:00 IST)
• DPR Submission: Within 3 months of In-Principle Approval

Administrative Provisions and Intellectual Property

Operational Responsibilities Bidders are solely responsible for land finalization and hydrogen procurement. While MNRE may facilitate the selection of green hydrogen suppliers via separate competitive bidding if requested, the project developer must manage all safety, environmental, and regulatory clearances. Successful bidders must furnish a Security Deposit (Bank Guarantee) of 3% of the sanctioned CFA within two weeks of approval, valid until one year from project completion.

Intellectual Property Rights (IPR) IPR generated through these pilot projects shall belong to the contributing parties, including MNRE and the Ministry of Steel, in proportion to their respective financial and technical contributions. The Government of India shall retain a royalty-free license for the use of the resulting Intellectual Property for domestic deployment. Entities licensed to market developed products in India must ensure domestic manufacturing.

Official Source Attribution

• MECON Limited (Scheme Implementing Agency)
• Ministry of Steel (MoS)
• Ministry of New and Renewable Energy (MNRE)
• National Green Hydrogen Mission (NGHM)