The government is set to launch a new phase of the production-linked incentive (PLI) scheme for the steel sector on January 6. Steel Minister HD Kumaraswamy will unveil the ‘PLI 1.1 Scheme’.
According to a statement issued by the Ministry of Steel, “Union Minister for Steel and Heavy Industries will launch the ‘PLI 1.1 Scheme’ for the steel industry and invite applications on January 6.”
The PLI scheme for specialty steel was introduced to boost domestic production and reduce imports by attracting capital investments. The initiative has already secured investments worth Rs 27,106 crore, with the aim of creating 14,760 direct jobs and producing an estimated 7.90 million tonnes of specialty steel.
By November 2024, companies had invested Rs 18,300 crore, creating more than 8,660 jobs.
The statement indicated that the government was in regular contact with the participating companies, and based on their feedback, it was decided to relaunch the program to encourage more participation.
The PLI concept was first introduced during the 2020 global lockdowns during the COVID-19 pandemic to stimulate local manufacturing. The program was initially launched for three sectors, and was expanded to include steel in November 2020.
While the first round of the PLI scheme for specialty steel did not meet expectations, the government has emphasized the need for more efforts in this area. Specialty steel, which is vital to sectors such as defence, automotive and electronics, remains an area that requires further development. The government had previously admitted that the uptake of the program’s incentives had not lived up to expectations.
The ministry previously stated that investments in the steel sector have a long development timeline, influenced by factors such as the purchase of equipment, most of which is sourced abroad.
Project delays are caused by unavoidable circumstances, including supply chain disruptions due to geopolitical issues, unforeseen events, natural disasters, and market fluctuations, among others.
In cooperation with other relevant government agencies, the Ministry works closely with PLI beneficiaries to address the challenges faced by companies and assist them in meeting their obligations.
Steps have been taken to expedite project clearance processes, implement SOPs for Indian visas for experts, and maintain ongoing engagement with stakeholders to address concerns of participating companies.
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