Union Minister of Steel and Heavy Industries Shri H.D. Kumaraswamy is set to launch the ‘PLI Scheme 1.1’ for the steel industry and invite applications during an event in New Delhi. Initially introduced in November 2020, the Production-Linked Incentive (PLI) scheme for steel has already attracted investments worth ₹27,106 crore, created.
14,760 jobs, and aims to produce 7.90 million tonnes of specialty steel. As of November 2024, ₹18,300 crore has been invested, generating over 8,660 jobs. Following feedback from participating companies, the Steel Ministry identified the potential to re-notify the scheme to encourage broader participation and drive further growth in the sector.
On January 6, 2025, Union Minister of Steel and Heavy Industries, Shri H.D. Kumaraswamy, unveiled the Production-Linked Incentive (PLI) Scheme 1.1 for the steel industry at Vigyan Bhavan, New Delhi. This initiative aims to bolster domestic manufacturing of specialty steel, reduce import dependence, and position India as a global leader in steel production.
Background and Objectives
The PLI Scheme 1.1 builds upon the original PLI scheme introduced in November 2020, which successfully attracted investment commitments of ₹27,106 crore, generated direct employment for 14,760 individuals, and anticipated the production of 7.9 million tonnes of specialty steel. The new iteration seeks to expand industry participation by addressing feedback from stakeholders and introducing more flexible terms.
Key Features of PLI Scheme 1.1
- Product Categories: The scheme continues to focus on five primary specialty steel categories:
- Coated/plated steel products
- High strength/wear-resistant steel
- Specialty rails
- Alloy steel products and steel wires
- Electrical steel
- Financial Allocation: Operating within the original budget of ₹6,322 crore, the scheme incentivizes incremental production to encourage manufacturers to enhance their output of specialty steel.
- Application Window: Interested companies can submit applications from January 6 to February 17, 2025. This extension aims to provide ample time for potential participants to align their proposals with the scheme’s objectives.
Industry Impact and Expectations
The launch event witnessed participation from senior ministry officials and industry leaders, reflecting the collaborative effort to strengthen India’s steel sector. By promoting the domestic production of high-value steel products, the PLI Scheme 1.1 is expected to reduce import dependence, enhance the competitiveness of Indian manufacturers, and generate employment opportunities. This initiative aligns with the broader goal of achieving self-reliance in critical sectors and boosting economic growth.
In summary, the PLI Scheme 1.1 represents a strategic move to invigorate India’s specialty steel industry, fostering innovation, investment, and sustainable development.
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Construction, Infrastructure and Mining
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