The government is set to launch a new phase of the Product Linked Incentive (PLI) scheme for the steel sector on January 6. 'PLI Scheme 1.1' will be unveiled by Steel Minister HD Kumaraswamy.
According to a Steel Ministry statement, “Union Minister of Steel and Heavy Industries will launch 'PLI Scheme 1.1' for the steel industry and call for applications on January 6.
PLI scheme was introduced for specialty steels to boost domestic production and reduce imports by attracting capital investment. Aiming to generate 14,760 direct jobs and produce an estimated 7.90 million tonnes of specialty steel, the initiative has already attracted investments of Rs 27,106 crore.
By November 2024, companies have invested Rs 18,300 crore, creating more than 8,660 jobs.
The government has been in regular contact with the participating companies and based on their feedback, decided to re-launch the scheme to encourage more participation, the statement said.
The concept of PLI was first introduced during the 2020 global lockdown to stimulate domestic production during the Covid-19 pandemic. Initially launched for three sectors, the scheme was expanded to include steel in November 2020.
Although the first round of the PLI scheme for specialty steels did not meet expectations, the government has emphasized the need for more efforts in this area. Specialty steels, essential for sectors such as defense, automotive and electronics, remain an area in need of further development. The government had earlier admitted that the incentive uptake of the scheme had fallen short of expectations.
Earlier, the ministry stated that investment in the steel sector has a long development period and is influenced by factors such as the purchase of equipment, most of which is sourced from abroad.
Project delays are caused by unavoidable circumstances, including geopolitical issues, unforeseen events, natural disasters and supply chain disruptions due to market fluctuations.
In collaboration with other relevant government agencies, the Ministry works closely with PLI beneficiaries to address the challenges faced by companies and support them in fulfilling their commitments.
Steps have been taken to expedite project clearances, implement standard operating procedures for Indian visas for experts and continue to work with stakeholders to resolve issues of participating companies.