Union Steel Minister H D Kumaraswamy launches PLI Scheme 1.1 for Specialty Steel
2 min read
New Delhi: Union Minister for Steel H D Kumaraswamy launched the second edition of the Production-Linked Incentive (PLI) scheme for specialty steel, titled PLI Scheme 1.1.
This landmark initiative seeks to drive innovation, reduce imports and position India as a global steel powerhouse.
In his address, the minister underscored the critical role of specialty steel in supporting infrastructure, defense, automobiles, and renewable energy sectors.
“Specialty steel is the backbone of India’s growth,” he said, emphasising the growing demand for high-quality, value-added steel as an opportunity to bolster Atmanirbhar Bharat.
The application window for PLI Scheme 1.1 opens January 6 and will close on January 31, 2025.
Kumaraswamy invited companies to actively participate, calling it a “transformative initiative” that reflects the government’s commitment to strengthening domestic production and innovation.
Success of PLI 1.0 Inspires New Round
Highlighting the success of the first round of the PLI scheme, Kumaraswamy shared impressive achievements: ₹27,106 crore in investments, 14,760 direct jobs created, and 7.90 million tonnes of additional specialty steel production capacity. By October 2024, investments of Rs 17,581 crore had already been made, resulting in the creation of over 8,660 jobs.
He said, “The success of PLI 1.0 is inspiring and reinforces our resolve to advance India’s steel industry on the global stage.”
Key Features of PLI Scheme 1.1
The revised PLI Scheme 1.1 incorporates feedback from the industry to address critical gaps.
Major updates include:
– Allowing capacity augmentation for all participants for greater flexibility.
– Mandating investments prior to incentive claims.
– Permitting excess production to offset shortfalls in the following year.
The scheme covers the period from FY 2025–26 to FY 2029–30, with incentives disbursed until FY 2030–31 at revised rates. However, projects already covered under PLI 1.0 MoUs will not be eligible under the new scheme to ensure fairness and avoid overlap.
Driving India’s Steel Ambitions
India, the world’s second-largest steel producer and consumer, has witnessed over 12% annual growth in domestic steel consumption since 2022, driven by strong economic fundamentals and infrastructure investments.
The minister reaffirmed India’s ambition to achieve 300 million tonnes of steel production annually by 2030, a goal set by Hon’ble Prime Minister Narendra Modi. “Under the visionary leadership of Prime Minister Modi, India is emerging as the epicenter of global steel growth,” Kumaraswamy said.
He concluded by urging the industry to seize this opportunity to innovate, invest, and collaborate with the government to fulfill commitments and strengthen Brand India. “Together, we can reduce imports, foster innovation, and make India a global leader in specialty steel,” he remarked.
The event was attended by Secretary for steel, Sandeep Poundrik, SAIL secretary Amarendu Prakash, officials from steel ministry, distinguished guests and representatives from the steel industry, showcasing a united vision for India’s steel sector.
– Team Mysoorunews
Mysooru News
