Govt Launches New Round Of PLI Scheme For Steel Sector

New Delhi, Jan 6 (KNN) The Indian government is set to launch a new round of the Production-Linked Incentive (PLI) scheme for the steel sector on January 6, with Steel Minister H D Kumaraswamy scheduled to inaugurate 'PLI scheme 1.1' and invite applications from potential participants. 

This initiative follows the government's earlier PLI scheme for specialty steel, which was designed to boost domestic production and reduce imports through strategic capital investments.

The original scheme has already demonstrated significant impact, attracting investments of Rs 27,106 crore and creating prospects for 14,760 direct jobs, with an estimated specialty steel production capacity of 7.90 million tonnes. As of November 2024, participating companies have invested Rs 18,300 crore and generated more than 8,660 employment opportunities.

The decision to launch a new round comes after regular interactions with participating companies revealed opportunities for broader participation in the scheme. 

The government acknowledges that while the initial response to the specialty steel PLI scheme didn't meet expectations, there remains significant potential for growth in this crucial sector.

The PLI concept, which emerged during the Covid-19 pandemic lockdowns of 2020, was initially implemented across three sectors before being extended to include steel in November of the same year. 

The initiative reflects the government's commitment to strengthening domestic manufacturing capabilities, particularly in strategic sectors.

Specialty steel, a high-grade product essential for defense, automobile, and electrical sectors, remains a priority area for development. The government's continued focus on this sector through the PLI scheme demonstrates its commitment to enhancing India's manufacturing capabilities in specialised steel products, aiming to reduce dependency on imports while fostering domestic innovation and production capacity.

(KNN Bureau)