The Indian government launched the revamped Production-Linked Incentive (PLI) Scheme 1.1 for specialty steel on Monday, aiming to attract more investments and reduce reliance on imports. The revised scheme introduces a lower investment threshold and relaxed compliance requirements, allowing companies to qualify for incentives even by expanding their existing manufacturing capacities. This change addresses industry feedback and ensures a more investor-friendly framework.
A significant adjustment in PLI 1.1 is the reduction of the investment threshold for Cold Rolled Grain Oriented (CRGO) steel from ₹5,000 crore to ₹2,000 crore, with the required capacity creation lowered from 200,000 tonnes to 50,000 tonnes. Additionally, the scheme allows companies to carry forward excess production capacity to the following year, incentivizing overachievement of annual targets.
The scheme focuses on critical product categories essential for strategic sectors such as infrastructure, renewable energy, and automobiles. By targeting specialty steel production, the government aims to bridge the gap between domestic supply and demand. Currently, India’s annual CRGO steel consumption stands at 1.2–1.3 lakh tonnes, while domestic production is only 50,000 tonnes, according to Steel Secretary Sandeep Poundrik.
PLI 1.1 is funded through ₹4,400 crore from the unutilized allocation of the earlier scheme, PLI 1.0. Applications for the revamped scheme opened on Monday and will remain open until the end of January 2025, giving companies an opportunity to participate and benefit from the incentives.
Minister of Steel HD Kumaraswamy emphasized that the updated scheme incorporates industry feedback, ensuring it is more aligned with market needs. He noted that the focus on specialty steel production will support India’s broader economic and strategic goals by strengthening critical sectors and reducing import dependence.
We use cookies to ensure you get the best experience on our website. Read more...
