The Indian government is set to launch an updated version of its production-linked incentive (PLI) scheme for the steel sector on Monday. The steel minister, H.D. Kumaraswamy, will officially launch the ‘PLI Scheme 1.1’ for the steel industry on January 6, with calls for applications opening on that date, according to a statement from the Ministry of Steel.
The government had previously introduced the PLI scheme for specialty steel to stimulate domestic production and reduce imports by attracting significant investments. The initiative has already drawn investments totaling Rs 27,106 crore, with plans to create 14,760 direct jobs and produce an estimated 7.90 million tonnes of specialty steel.
By November 2024, companies had invested Rs 18,300 crore, generating over 8,660 jobs in the process. Based on feedback from participating firms, the government has decided to revise and relaunch the scheme to encourage further participation, the Ministry added.
The PLI program was first proposed during the global lockdowns of 2020 as a response to the need for strengthening domestic manufacturing. Originally launched for three sectors, it was expanded to include steel in November 2020.
While the government had expected a stronger response to the first phase of the PLI scheme for specialty steel, it is now working on a second phase to better meet the sector’s needs. The specialty steel sector remains a key area for growth, with products in high demand for industries such as defense, automotive, and electronics.
