The government’s revamped Production Linked Incentive (PLI) scheme for the steel sector has an estimated budget of Rs 4,300 crore. The revised plan aims to boost the production of specialty and electrical steel.

Specialty steel is a high-end product used in the automotive, electrical, and defense industries, among others.

The scheme’s second edition was released after extensive talks with industry stakeholders. The key concerns raised by the sector have been taken into account by officials in an attempt to attract additional companies and investments.

The first PLI project for the steel sector, which had a larger budget of Rs 6,322 crore, received investments totaling Rs 18,300 crore, in contrast to the Rs 27,106 crore committed commitment.

The government had already declared that on Monday, 6 January, it would begin a new phase of the PLI program for the steel industry. “Union Minister of Steel and Heavy Industries…will launch ’PLI scheme 1.1’ for the steel industry and call for applications on 6 January.” the steel ministry said in a statement.

Production-Linked Incentives (PLI) were devised during the global lockdowns caused by COVID in 2020. Steel was added to the PLI plan in November 2020 after it was initially presented for three industries. Specialty steel is one area that still need work. As mentioned before, the government implemented a PLI to promote the manufacturing of specialty steel, however the adoption of the policies did not go as planned.

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