Since 2002, India has been the largest producer of sponge iron, also called direct reduced iron (DRI), in the world. Today about 20 per cent of the sponge iron produced worldwide is made in India(1). Most of it is produced primarily through the coal based method of production. In Orissa only, there are about 108 sponge iron plants(2). The major problem with Indian sponge iron industry is that these are mostly coal-based units. Coal based sponge iron units are found to be extremely polluting. Sponge iron plants are categorized under 'red categories' industries which means that they have higher pollution potentials and cause serious health hazards. During operation it emits huge quantity of smoke containing oxides of sulphur and carbon, un-born carbon & silica particles. Similarly the processes also release extreme heat. Due to lack of proper/stringent monitoring mechanism, the plant owners seldom use this instrument thus leading to air pollution.