The Production Linked Incentive (PLI) Scheme for specialty steel has attracted investment commitments of ₹27,106 crore, the government informed Parliament on Friday. Out of this, ₹18,848 crore has already been invested as of December 2024, according to Minister of State for Steel and Heavy Industries Bhupathiraju Srinivasa Varma.
The scheme aims to boost the production of value-added steel by encouraging investment in the sector. The steel industry remains deregulated, meaning investment and production decisions are driven by techno-commercial considerations, the minister noted in his response to a Rajya Sabha query.
Second Round of PLI Scheme Launched
A second round of the PLI scheme for specialty steel was launched on January 6, 2025, under the allocated budget for the scheme. This round aims to widen participation across various companies, regardless of their size.
The government has taken several measures to ensure broader participation, including:
- Launch of a dedicated web portal for the PLI scheme (version 1.1)
- Wide publicity through media campaigns
- Frequent webinars to engage interested companies
- Flexible rules allowing companies to invest 50% in expanding existing facilities to qualify under notified sub-categories
Boosting Value-Added Steel Production
The PLI scheme is critical to advancing India’s specialty steel production. This sector plays a key role in infrastructure, automobiles, and defense. The initiative incentivizes investments in value-added products. It aims to reduce dependence on imports and improve global competitiveness.
The scheme’s second phase highlights the government’s focus on sustainable growth. It supports both existing and new investments to meet growing demand. This includes both domestic and international markets.
