Government Unveils New PLI Scheme for Steel Sector

In a significant move to bolster the domestic steel industry, the government is set to launch another round of the Production-Linked Incentive (PLI) scheme for the steel sector. Steel Minister H D Kumaraswamy will inaugurate the 'PLI scheme 1.1' on Monday, aiming to attract more investments and enhance the production of specialty steel.

This initiative is part of the government's broader strategy to reduce imports by encouraging domestic manufacturing. The initial PLI scheme for specialty steel has already attracted investments worth Rs 27,106 crore, leading to the creation of 14,760 direct jobs and an estimated production of 7.90 million tonnes of specialty steel.

As of November 2024, participating companies have invested Rs 18,300 crore, generating over 8,660 jobs. The government's decision to reintroduce the scheme comes after regular interactions with the industry, indicating a positive response and the potential for further participation.

Focus on Specialty Steel

Specialty steel, used in critical sectors like defense, automobile, and electrical, remains a focus area for the government. Despite the initial PLI scheme's launch, the uptake of incentives for specialty steel manufacturing did not meet expectations, prompting the need for a new round of the scheme.

The PLI scheme was initially conceived during the COVID-19 pandemic to emphasize the importance of enhancing domestic manufacturing capabilities. It was later extended to include the steel sector in November 2020, reflecting the government's commitment to strengthening the industry.