Abstract: “Steel industry is the energy intensive sector directly affecting the growth of the nation. The effect of the restriction put by the government in terms of environmental emissions as well as the costs incurred due to change in environmental practices on the productivity is to be measured. The Green Productivity Index (GPI) is a cumulative index for measurement of the environmental effect and the economic performance. A system model is presented in this paper for analyzing strategy decision making by AHP analysis. A suggestion has been made for implementing the Green Supply chain process for deciding the priority in sequence of Green Manufacturing, Reverse Logistics, Green Marketing, Investment Recovery and Green Purchasing. An attempt has been made to analyze the amount of steel production, energy consumption and emissions in an integrated environmental sustainable framework from primary research data. To benchmark the productivity of a company considering the environmental effect, Gree”

Keywords: Green Productivity Index (GPI), Green Supply Chain Management (GSCM), Environmental Impact (EI)