08-Feb-2025, 12:46 PM
India’s Production Linked Incentive (PLI) scheme for specialty steel aims to enhance domestic production, attract investments, and reduce reliance on imports in the steel sector. The government launched the second phase of the PLI scheme for specialty steel, known as PLI Scheme 1.1, on January 6, 2025. The application window is open from January 6 to January 31, 2025.
PLI Scheme 1.1 Details:
Budgetary Allocation: The scheme operates with a budget of approximately INR 63.22 billion (US$737.45 million).
Objective: To promote domestic manufacturing of value-added steel grades.
Product Categories: The scheme covers five key product categories: Coated/plated steel products, High strength/wear-resistant steel, Specialty rails, Alloy steel products and steel wires, and Electrical steel.
Key Changes: PLI Scheme 1.1 includes lowered investment and capacity thresholds for Cold-Rolled Grain-Oriented (CRGO) steel sub-categories, allows companies to carry forward excess production to subsequent years for claiming incentives, and reduces the minimum investment required under the capacity augmentation mode.
Investment Eligibility: Investments made after January 6, 2025, are eligible for participation in the scheme.
Phase 1 of the PLI Scheme:
The initial PLI scheme was launched on July 29, 2021.
It attracted investments worth ₹27,106 crores2. The participating companies pledged to invest Rs. 27,106 crore.
As of November 2024, approximately INR 183 billion (US$2.13 billion) had been invested in the sector, resulting in about 8,300 direct jobs. By October 2024, Rs 17,581 crore had been invested.
44 projects from 26 companies were approved.
The scheme aimed to develop 24 million tonnes of downstream capacity1. Specialty steel production is expected to reach 1,258,000 tonnes8 by December 2024.
The PLI scheme aims to position India as a global leader in high-end steel manufacturing.
