The Union government on Tuesday (November 4) launched the third phase of the Production Linked Incentive (PLI) Scheme for Speciality Steel, marking another step towards India’s goal of achieving self-reliance in high-grade steel production.
Announcing the initiative in New Delhi, Union Steel Minister H.D. Kumaraswamy said that the new round, PLI 1.2, will help spur fresh investment, create jobs, and reduce the country’s reliance on imports of advanced steel used in defence, power, aerospace, and infrastructure sectors.
The PLI scheme for speciality steel, first approved by the Union Cabinet in July 2021, has a total outlay of ₹6,322 crore. It provides financial incentives on incremental production and investment in select steel categories, aiming to enhance India’s domestic capabilities and attract global players to set up manufacturing units in the country.
According to the Steel Ministry, PLI 1.2 is designed to build on the success of the first two rounds of the scheme, which together attracted committed investments worth Rs 43,874 crore, with Rs 22,973 crore already deployed. These earlier rounds have also generated over 13,000 jobs, boosting the employment landscape in the steel manufacturing sector.
“India must not only increase its steel production capacity but also focus on value addition through advanced technologies. This scheme will ensure that India produces more high-end steel for strategic sectors domestically,” said Kumaraswamy during the launch event.
The scheme currently covers 22 sub-categories of speciality steel, including cold-rolled grain-oriented (CRGO) steel, stainless steel (long and flat), alloy steel, coated steel, super alloys, titanium alloys, and alloy forgings, many of which are currently imported.
Under PLI 1.2, incentives will range from 4 percent to 15 percent of incremental production value and will be applicable for five years, starting from FY2025-26. The government has also revised the base year for pricing to 2024-25 to align with prevailing market conditions.
Officials said that disbursement of incentives would begin in the next fiscal year, and the fresh round of applications is expected to draw strong participation from both existing producers and new entrants in the high-end steel manufacturing sector.
The new phase represents a strategic continuation of the Centre’s Atmanirbhar Bharat vision, reducing dependency on steel imports while making India a global exporter of speciality steel.
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