Has the PLI for Specialty Steel Attracted Investments of Rs 23,022 Crore Until October?
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Synopsis
Discover how the Production-Linked Incentive scheme is reshaping India's specialty steel sector with investments reaching Rs 23,022 crore. This initiative not only aims to boost production but also positions India as a leading player in the global steel market. Dive into the details of this impactful program.
Key Takeaways
- The PLI scheme for specialty steel has drawn Rs 23,022 crore in investments.
- It aims to enhance steel production via financial incentives.
- The initiative could generate 30,760 jobs and produce 14.3 million tonnes of specialty steel.
- The government supports the sector through customs duty revisions.
- New product innovations are encouraged in the third round of the scheme.
New Delhi, Dec 2 (NationPress) The Production-Linked Incentive (PLI) scheme for specialty steel has successfully garnered investments totaling Rs 23,022 crore from beneficiary companies as of October, as announced in Parliament on Tuesday.
Instituted by the Union Cabinet in July 2021 with a financial plan of Rs 6,322 crore, this initiative aims to enhance specialty steel production via monetary incentives, shared Minister of State for Steel and Heavy Industries, Bhupathiraju Srinivasa Varma, while responding to inquiries in the Lok Sabha.
In alignment with this initiative, the ministry is executing a pilot project focusing on the utilization of hydrogen in the steel industry, under the auspices of the National Green Hydrogen Mission initiated by the Ministry of New and Renewable Energy.
Thus far, four pilot projects have been granted approval in the steel sector. The ministry regularly updates the basic customs duty to maintain competitive prices for essential raw materials like scrap for steel units within the nation, including Rajahmundry, Varma mentioned.
The steel industry operates in a deregulated environment, with the government fostering a supportive policy framework for sector growth.
“In 2024-25, there were 2 and 9 steel rolling mills in East Godavari and Visakhapatnam, respectively, around the Rajahmundry area. The Steel Scrap Recycling Policy of 2019 creates a collaborative framework involving various ministries to encourage recycling of ferrous scrap from diverse sources,” the minister elaborated.
Earlier in November, Union Steel and Heavy Industries Minister H.D. Kumaraswamy introduced the third phase of the PLI scheme for specialty steel.
The third phase (PLI 1.2) seeks to draw fresh investments in cutting-edge steel products, including super alloys, CRGO, stainless steel long and flat products, titanium alloys, and coated steels.
This initiative is anticipated to create substantial employment opportunities, enhance high-end steel production capacity, and establish India as a preferred supplier in the global specialty steel value chain.
The Steel Ministry’s PLI scheme has, to date, attracted an investment commitment of Rs 43,874 crore, which is expected to directly employ 30,760 individuals and yield an estimated 14.3 million tonnes of specialty steel.
Point of View
The PLI scheme for specialty steel represents a significant move towards enhancing India's manufacturing capabilities. As the country strives to position itself as a global player in the steel market, this initiative's success could lead to increased employment and production capacity, aligning with national goals of economic growth and sustainability.
NationPress
02/12/2025
Frequently Asked Questions
What is the PLI scheme for specialty steel?
The PLI scheme for specialty steel is a government initiative designed to provide financial incentives to boost production in this sector, with an approved budget of Rs 6,322 crore.
How much investment has the PLI scheme attracted?
As of October, the PLI scheme for specialty steel has attracted investments totaling Rs 23,022 crore from participating companies.
What are the expected outcomes of the PLI scheme?
The scheme is expected to create direct employment for about 30,760 people and produce an estimated 14.3 million tonnes of specialty steel.
How does the government support the steel industry?
The government creates a conducive policy environment and periodically revises customs duties to ensure competitive pricing for raw materials in the steel sector.
What new products are being targeted in the third round of the PLI scheme?
The third round aims to attract investments in advanced steel products like super alloys, CRGO, stainless steel, titanium alloys, and coated steels.
