Foundry sector emerges as hotspot of pollution

The foundry sector, in particular, has emerged as a hotspot for industrial emissions.

Foundries are manufacturing units that melt and cast metal (typically iron or steel) into critical components for vehicles, machinery, and infrastructure. 

This process consumes enormous amounts of energy, both thermal and electrical, and produces significant quantities of carbon dioxide and particulate matter. 

In Maharashtra, an estimated 8,259 MSME units are operating in the secondary steel and foundry sector alone. Collectively, they are estimated to consume 11.8 million tonnes of oil equivalent (Mtoe) in energy annually and emit 58 MtCO2, according to data reported through SAMEEEKSHA, India’s energy efficiency platform for MSMEs.

“Foundries are indispensable to India’s manufacturing economy, which boasts the world’s second largest foundry sector, but they’re also incredibly hard to decarbonise,” said Rahul Patil, Chairman, Indian Institute of Foundrymen - Kolhapur. 

“These units typically function on thin profit margins, use legacy equipment, and don’t have the resources or policy clarity needed to modernise in line with global climate norms,” he added. 

This challenge is further intensified by global trade developments such as the European Union’s Carbon Border Adjustment Mechanism (CBAM), which imposes carbon tariffs on energy-intensive imports from countries without comparable climate action. 

As MSMEs contribute approximately 44 per cent of India’s total exports, especially in sectors like iron, steel, aluminium, and engineering goods, their ability to comply with such international regulations will directly impact the viability of India's export economy. Without interventions to help MSMEs adopt carbon accounting, emissions tracking, and energy-efficient technologies, thousands of small manufacturers across Maharashtra may find themselves locked out of international markets.

“There is already a visible appetite among MSMEs in Maharashtra to adopt cleaner practices,” said Dr Suhas Buddhe, former Vice-President, Vidarbha Industries Association. “But the scale of change required cannot happen through individual efforts. What’s needed is an enabling ecosystem, one that brings together financing, policy, training, and recognition,” he added.

“Maharashtra can lead in ‘ease of decarbonisation’ by activating a supportive ecosystem for micro and small enterprises. As climate action and business sustainability increasingly become synonymous, the state is well positioned to champion collective progress,“ Vishwajeet Poojary who leads Asar’s work on Maharashtra State Climate Action.