India will allocate 200bn rupees ($2.2bn) over the next five years for carbon capture, utilization and storage (CCUS), the government said in its 2026-27 federal budget presented on 1 February.
The funding would support the scaling up of CCUS technologies to reduce the carbon intensity of industrial production, particularly in hard-to-abate sectors, finance minister Nirmala Sitharaman said in her budget speech.
The budget links the proposed outlay to a national CCUS research and development roadmap launched in December 2025, which aims to raise the technology readiness level of CCUS applications from laboratory and pilot stages to deployment in industrial settings.
Geological assessments cited in the national CCUS roadmap estimate over 390mn t of CO2 storage potential, including 291mn t in deep saline aquifers, 97mn-316mn t in Deccan and Rajmahal basalt formations, and around 1.2mn t of viable storage through enhanced oil recovery (EOR) in mature oilfields.
