Steel ministry sets sights on unused ₹4,000 cr for PLI 2.0

livemint.com:

NEW DELHI : The steel ministry is seeking the release of around ₹4,000 crore of unused funds from the existing production linked incentive (PLI) for specialty steel to enable it to launch an expanded version— PLI 2.0—for steel grades used in making defence equipment and automobiles, two persons privy to the development said. With the new PLI edition ready to launch, the steel ministry proposes to write to the finance ministry asking for these unused funds, the people cited above said.

The existing steel PLI scheme has been closed after receiving applications for only ₹2,300 crore of the budgeted ₹6,322 crore. One of the people mentioned above said the steel ministry wants the finance ministry to release the remaining funds so that they can launch a new incentive scheme under PLI 2.0 that they say could find many more takers, along with the potential to scale up domestic manufacture of steel products that are currently imported.

PLI 2.0 is important to kick off manufacture of special steel grades that were available for incentives under the existing scheme but where no MoU could be signed till the close of application window. Queries sent to the finance and steel ministries remained unanswered at press time.

But an official said on condition of anonymity that the steel ministry expects the finance ministry’s clearance on funding for steel PLI 2.0 in a few weeks’ time so that the applications for the expanded PLI could be started later this year. Mint had reported in May that PLI 2.0 for steel is in the final stages of discussions with the steel ministry targeting roll-out before the end of the current calendar year after various approvals, including one from the Union cabinet.