Booster dose: Centre to launch PLI Scheme 1.1 for steel sector, stimulating investments and job creation

The government is all set to launch a new phase of its Production Linked Incentive Scheme (PLI) for the steel sector on January 6. ‘PLI Scheme 1.1’ will be unveiled by Steel Minister HD Kumaraswamy.

According to a Steel Ministry statement, “Union Minister of Steel and Heavy Industries will launch PLI Scheme 1.1 for the steel industry and invite applications on January 6.”

The PLI scheme for specialty steel was introduced to boost domestic production and reduce imports by attracting capital investment.The initiative has already secured an investment of Rs 27,106 crore with an aim to create 14,760 direct jobs and produce about 7.90 million tonnes of specialty steel.

By November 2024, companies have invested Rs 18,300 crore, creating more than 8,660 jobs.

The government has been in regular contact with the participating companies and based on their feedback, it has been decided to relaunch the scheme to encourage greater participation, the statement said.

The PLI concept was first introduced during the global lockdowns of 2020 during the Covid-19 pandemic. Initially launched for three sectors, the scheme was expanded to include steel in November 2020.

Although the first phase of the PLI scheme for specialty steel did not live up to expectations, the government emphasized the need for more efforts in this area. : The government has previously admitted that the uptake of the scheme’s incentives has fallen short of expectations.

The ministry said earlier that investments in the steel sector have a long development timeline, influenced by factors such as equipment purchases, most of which are sourced from abroad.

Project delays are caused by unavoidable circumstances, including supply chain disruptions due to geopolitical issues, unforeseen events, natural disasters and market fluctuations.

In collaboration with other relevant government agencies, the Ministry works closely with PLI beneficiaries to address the challenges faced by companies and support them in fulfilling their obligations.

Steps have been taken to expedite program approvals, implement standard operating procedures for Indian visas for experts, and continue engagement with stakeholders to address concerns of participating companies.