The Government of India will launch another phase of the Production-Linked Incentive (PLI) scheme for the Steel sector on Monday. Union Steel Minister H.D. Kumaraswamy will officially kick off the ‘PLI Scheme 1.1’ and invite applications starting from 6th January.
The Ministry of Steel stated that the new round of the scheme aims to boost domestic production of special steels, attract capital investment, and reduce imports. The Government had earlier launched a PLI scheme specifically for special steels, which has already attracted investments worth Rs. 27,106 crore. This investment is expected to lead to the production of 79 lakh tones of special steel, creating 14,760 direct job opportunities.
PLI Scheme Extended to Include Steel in 2020
Initially, the PLI scheme was introduced for three sectors. However, in November 2020, it was extended to include the steel sector as well. The Government had mentioned that it was working on a new phase of the PLI scheme for special steels, as the response from the first phase had not met expectations.
Over 8,660 Jobs Created by November 2024
By November 2024, companies participating in the PLI scheme had already invested Rs. 18,300 Crores and created over 8,660 jobs. According to the Ministry, the Government is in regular discussions with the companies involved and has recognized the need to re-notify the scheme to attract more participation based on the feedback received.
The PLI scheme was conceptualized in 2020 during the global lockdowns caused by the COVID-19 pandemic, with a focus on promoting domestic manufacturing. The extension of this scheme to the steel sector aims to further strengthen India’s position in the global steel market while creating significant employment opportunities.
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