Govt panel may approve ₹4,000 cr new PLI scheme for specialty steel next month
Subscribe to enjoy similar stories. A top government panel is likely to approve a ₹4,000-crore production linked incentive (PLI) scheme next month to boost the domestic production of specialty steel and curb imports, two persons in the know of the development said.
The approval from the empowered group of secretaries (EGoS) will pave the way for the launch of the second phase of the incentive scheme (PLI 2.0) for value-added steel. The scheme had got delayed due to poor demand for the alloy, procedural issues and lacklustre participation from domestic companies in the initial round of the scheme, which was approved by the government in 2021.
The scheme is being revived to leverage strong demand conditions and stable prices, as India seeks to move up the steel value chain and compete with advanced steelmaking economies like Japan and South Korea. The domestic steelmakers have also given inputs to the Union steel ministry about their participation in production of import substitution products in the country and strengthen the Atmanirbhar Bharat initiative.
“We have finalised PLI 2.0 without much changes from the earlier scheme. The scheme parameters are based on inputs from the industry and funds for supporting it would come from balance remaining in PLI 1.0 of about ₹4,000 crore.
The terms of the scheme would be similar to other PLIs that incentivize production of identified products for a period of up to five years," said the first of the two persons cited earlier, both of whom spoke on the condition of anonymity. Specialty steel is value-added steel where finished steel is given coating, plating, or heat treatment to transform it into high value-added steel that can be used in various strategic sectors such as defence,
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