PLI Scheme for Specialty Steel Secures Rs 17,000 Crore in Investment Commitments
The second phase of the production-linked incentive (PLI) scheme for specialty steel has seen investment commitments of Rs 17,000 crore, the Ministry of Steel said. This expansion is expected to enhance India's global competitiveness in the manufacturing of specialty steel while driving the 'Make in India' vision.
Union Steel Minister HD Kumaraswamy highlighted the importance of the scheme in curtailing imports of high-grade specialty steel and making domestic production robust. "India is the world's second-largest producer and consumer of steel, but we still depend on imports for some of the high-grade varieties. The PLI scheme aims to fill this gap and foster self-reliance", he said.
The PLI plan for specialty steel, initiated in July 2021, includes five wide categories and 19 sub-categories. It provides incentives of 3-4% to India-registered companies producing steel end-to-end. The scheme has evoked robust industry response, and the government has launched a second round to cover additional companies.
During the first round, 23 firms had filed 44 applications, with one project already receiving incentives. The second round has seen even more enthusiasm, with 25 firms filing 42 applications and pledging Rs 17,000 crore of investments.
Kumaraswamy thanked the Ministry of Steel and MECON officials for accelerating the implementation of the scheme. "Their commitment and speed have been instrumental in speeding up this initiative", he said.
The minister also urged domestic steelmakers to invest in specialty steel production, highlighting its potential to enhance the country’s manufacturing capacity. “I personally request our steelmakers to set up specialty steel plants. Producing specialty steel domestically will strengthen India’s steel sector and contribute to self-reliance”, he added.
As the PLI scheme takes shape, the government is set to continue creating an ecosystem for investment and innovation in specialty steel so that India remains a prominent player in the world steel map.
