The Ministry of Steel reached a noteworthy achievement with the signing of 42 Memorandums of Understanding (MoUs) under the Production-Linked Incentive (PLI) Scheme 1.1 for speciality steel. During the event, Union Minister of Steel H.D. Kumaraswamy stated that this development aligns with Prime Minister Narendra Modi’s “Make in India” initiative, which aims to boost domestic industrial capability.
The Minister highlighted that the PLI scheme plays a crucial role in progressing towards national self-reliance. Despite being the world’s second-largest steel producer and consumer, India continues to depend on imports for certain advanced steel grades. The scheme, therefore, seeks to bridge this gap by encouraging the production of these steel varieties within the country.
Introduced in July 2021, the PLI scheme for speciality steel encompasses five major categories and 19 sub-categories. Eligibility is limited to companies registered in India and engaged in comprehensive steel production processes. Substantial industry interest has led to the initiation of its second round to accommodate more companies seeking benefits.
To foster investment and enhance production levels, the government is offering financial incentives in the range of 3 percent to 4 percent, depending on the investment size and production targets met. In its initial phase, the scheme received 44 applications from 23 companies, and incentive disbursement has already commenced for one of the projects. The second round has seen increased participation, with 42 applications submitted by 25 companies, translating into an investment commitment of Rs 17,000 crore.
Minister Kumaraswamy appreciated the efforts of the Ministry of Steel officials and the team at MECON for their proactive role in implementing PLI Scheme 1.1. He attributed the scheme’s progress to their dedicated and timely action.
He also encouraged Indian steel manufacturers to prioritize the production of speciality steel. Stressing the domestic gap in this segment, he urged steel producers to establish plants for speciality steel. He remarked that successful domestic production of speciality steel would significantly strengthen the nation’s production capacity and self-sufficiency.
Reaffirming the government’s support for the sector, the Minister noted that the PLI Scheme has generated substantial momentum and reflects the country’s commitment to building a robust and globally competitive steel industry. He also extended his appreciation to Prime Minister Modi for his leadership and vision in promoting industrial growth through strategic initiatives like the PLI scheme. He congratulated the companies that formalized their participation through the signing of MoUs under the current round.
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