‘PLI scheme 1.1’ will add five categories of specialty steel products to the existing scheme, enabling further participation by industry stakeholders. The scheme will remain open from January 6 to 31, 2025, and operate within the amount of INR 6,322 crore. It will be implemented during the production period of 2025-2030.
Jan 6, 2025
In order to strengthen domestic production, foster innovation, reduce imports and position the country as a global steel powerhouse, the Union Ministry of Steel has launched the second round of Production-Linked Incentives (PLI) scheme for the steel sector, taking five more product categories of specialty steel under its ambit.
Inaugurating ‘PLI scheme 1.1,’ Union Minister of Steel and Heavy Industries HD Kumaraswamy said the new scheme will cover five additional product categories of specialty steel, enabling further participation of industry stakeholders. These include coated/plated steel products, high strength/wear-resistant steel, specialty rails, alloy steel products & steel wires, and electrical steel.
‘PLI Scheme 1.1’ will remain open from January 6 to 31, 2025, and operate within the amount of INR 6,322 crore, originally allocated for the scheme. It will be implemented during the production period of FY 2025-26 to FY 2029-30.
As per an official notification, certain changes have been incorporated with industry consultation to make the scheme more investor-friendly, which includes reduction in threshold investment & capacity for the CRGO product sub-categories, allowing carry forward of excess production to the immediately following year for the purpose of claiming incentive and reduction in threshold investment under capacity augmentation mode.
Changes to PLI rules have been made based on industry feedback. Not all companies will need to install new mills. Recognising the importance of producing quality steel, energy efficiency and other process improvements, companies investing in augmentation of existing capacities will be allowed to participate in the scheme. Investment in such cases will be 50 percent of the threshold mentioned in Annexure-III to the guidelines, which have been uploaded on the web portal recently launched by Mr. Kumaraswamy.
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Companies can carry forward excess production to the immediate following year for the purpose of claiming incentive: In case production by a given company in a given sub-category exceeds its committed production for that year, the excess quantum of production may be carried forward for meeting the shortfall, if any, in achieving the committed production of the immediate next year. This will ensure that incentives are distributed optimally, and no company is denied incentives, if they are unable to achieve an incremental production in the following year after a good year, it added.
