The Union Minister of Steel and Heavy Industries has launched the second round of the Production Linked Incentive (PLI) scheme for specialty steel, termed PLI Scheme 1.1
Key Features of PLI Scheme 1.1:
- Launch Date: Announced on 6 January 2025 by the Union Minister of Steel and Heavy Industries.
- Objectives:
- To boost domestic production of specialty steel.
- To reduce reliance on imports, particularly for high-value steel products.
- Product Categories: The scheme covers the same five product categories as the original scheme:
- Coated/Plated Steel Products
- High Strength/Wear Resistant Steel
- Specialty Rails
- Alloy Steel Products & Steel Wires
- Electrical Steel (including cold-rolled grain-oriented steel or CRGO).
- Changes in PLI Scheme 1.1:
- Relaxed Investment and Capacity Thresholds:
Specific sub-categories, like cold-rolled grain-oriented steel (CRGO)—used in power transformers—now have lower thresholds for investment and capacity requirements. - Industry Feedback Incorporated:
Modifications were made following requests from stakeholders for greater flexibility.
- Relaxed Investment and Capacity Thresholds:
- Implementation Period: The scheme will be implemented during the production period from FY 2025-26 to FY 2029-30.
- Budgetary Context: The first round of the PLI Scheme for Specialty Steel, notified on July 29, 2021, had a budgetary allocation of ₹6,322 Crore.
Significance of PLI Scheme 1.1:
- Strengthening Domestic Capability: Encourages investments in high-value steel products, reducing dependency on imports and enhancing self-reliance.
- Support for Critical Industries: By focusing on products like CRGO steel used in power transformers, the scheme supports critical infrastructure sectors.
- Boost to Manufacturing Sector: Aligns with India’s push toward becoming a global manufacturing hub under the “Make in India” and “Atmanirbhar Bharat” initiatives.
- Economic Impact: Expected to generate employment, attract investments, and drive growth in the steel industry.
