NEW DELHI: The government on Monday launched a new round of steel production-linked incentive (PLI) scheme, with a total outlay of Rs 4,400 crore.
This initiative aims to attract more steel companies and investments, particularly in the specialised steel production.
“We are launching steel PLI 1.1. After discussing with industry, we realised there was more capacity for specialised steel. Last year, we produced 180 million tonne of steel. India is witnessing 12-13% growth in steel demand. By 2030 we will need 300 million tonne steel,” said steel secretary Sandeep Poundrik.
The last date to file applications for PLI 1.1 is January 31, 2025, and this deadline will not be extended. Notably, Rs 4,000 crore from the previous PLI 1.0 scheme remains unutilised and will be allocated to PLI 1.1.
The PLI 1.0 scheme had attracted investments worth Rs 27,106 crore, creating 14,760 direct employment opportunities and producing 7.9 million tonne of specialty steel.
As of November 2024, companies have invested Rs 18,300 crore, generating more than 8,660 jobs. Poundrik outlined the key features of PLI 1.1, including the inclusion of coated and plated steel products, specialty rails, and end-to-end manufacturing.
The scheme requires an investment of Rs 3,000 crore, capacity creation of 50,000 tonne, and year-on-year growth of 10%. The government expects PLI 1.1 to further boost country’s steel production capacity, particularly in specialised steel segments.