Synopsis
The second round of the PLI scheme for specialty steel has attracted investments amounting to Rs 17,000 crore, promising to enhance India's competitiveness in the sector. The initiative aims to boost domestic production and reduce reliance on imports.Key Takeaways
- PLI scheme 1.1 has secured Rs 17,000 crore in investments.
- Focus on enhancing India's specialty steel production.
- Only Indian companies involved in steel production are eligible.
- Incentives range from 3-4% based on investment.
- Strong industry participation has led to Round 2 of the scheme.
New Delhi, March 25 (NationPress) The Production-Linked Incentive (PLI) scheme 1.1 for specialty steel has garnered investment commitments totaling Rs 17,000 crore in its second phase, as reported by the government.
This expansion is anticipated to significantly bolster India's global standing in the production of specialty steel.
The Ministry of Steel has formalized memorandums of understanding (MoUs) under the PLI Scheme 1.1 for specialty steel. Union Steel Minister HD Kumaraswamy stated that this scheme is a pivotal move towards fulfilling Prime Minister Narendra Modi’s vision for ‘Make in India’.
“The PLI scheme is a critical step towards realizing the Prime Minister’s goal of self-reliance. India stands as the second-largest producer and consumer of steel, yet we continue to import specific high-grade varieties. This initiative aims to close that gap by fostering domestic production,” the minister emphasized.
Initiated in July 2021, the PLI scheme for specialty steel encompasses five primary categories and 19 sub-categories.
This initiative ensures that only companies registered in India and involved in comprehensive steel production qualify for incentives.
The scheme has witnessed robust participation from the industry, prompting the government to launch Round 2, enabling more companies to gain from it.
In an effort to stimulate investment and increase output, the government is providing incentives ranging from 3-4 percent based on investment and production objectives.
During the first round, there were 44 applications submitted by 23 companies, with incentives already awarded for one project.
“The second round has seen even greater enthusiasm, with 25 companies submitting 42 applications, committing investments worth Rs 17,000 crore,” the minister added.
Commending the efforts of officials from the Ministry of Steel and the MECON team for their swift implementation of PLI 1.1, Kumaraswamy remarked, “The commitment and efficiency demonstrated by the ministry officials and the MECON team have been crucial in accelerating this scheme. Their hard work is essential for the success of this initiative.”
The minister also made a compelling appeal to domestic steel producers, urging them to concentrate on specialty steel production.
“Currently, we are not producing specialty steel at home, but I earnestly request our steel manufacturers to invest in specialty steel plants. Achieving domestic production of specialty steel will enhance our capacity and output. I urge all stakeholders to embrace this challenge and contribute to our self-reliance,” he concluded.
