In a detailed rating, which took two years to compile, of the country's 21 top steel makers, it found a general inefficiency in resource usage, widespread pollution and violation of environmental norms, among other deficiencies.
The companies, each having at least 500,000 tonnes of annual manufacturing capacity, were rated on 150 parameters, such as technology, process efficiency, pollution, occupational health and safety, and compliance with regulatory norms.
Among the worst performers were Bhushan Steel's Dhenkanal plant, Monnet Ispat and Energy Ltd and the IISCo Burnpur plant of public sector steel major SAIL.
The relative best performers (their overall rating on the CSE scale was 'average') included the Vizag steel plant of Rashtriya Ispat Nigam Ltd, Essar Steel's Hazira plant and Ispat Industries' Raigad plant.
"The poor environmental performance of this sector is a measure of the failure of the regulatory institutions in the country.
"Nobody is asking this sector to improve its green bottom-line. Nobody is measuring and monitoring its actual performance," said Sunita Narain, director-general of CSE.
According to CSE, the steel sector's energy consumption of 6.6 Giga Calories per tonne of output is 50 per cent higher than the global best practice. Process water consumption was 3.5 cubic metres per tonne, over three times the global best practice.
"The large-scale plants were found to be highly wasteful on land.
"If all the residual land with steel plants was to be properly utilised, the industry can produce more than 300 mt of steel (annually) and not the 75 mt it is producing today.
"Most steel plants were found to be non-compliant
This is what junk food companies are hiding from you
'We expect 25% growth in export volumes in FY13'
COLUMN: Why drought reigns eternal in India
'Need transparency in talks between govt and businesses'
Maha govt turns to Centre for developing mega cities