PLI Scheme Secures ₹17,000 Cr Investment for Specialty Steel

According to an official statement, 25 companies signed 42 agreements with the government to produce high-grade steel, with an approximate investment of Rs 17,000 crore as part of the second phase of the PLI Scheme for specialty steel.

In January, Union Minister of Steel and Heavy Industries HD Kumaraswamy initiated the second phase of the PLI scheme for speciality steel, referred to as PLI Scheme 1.1.

"The second round has seen greater enthusiasm, with 25 companies submitting 42 applications, committing investments worth Rs 17,000 crore," the Ministry of Steel said.

The firms entered into memorandums of understanding (MoUs) with the Ministry of Steel to manufacture five varieties of premium steel.

In the initial round, 23 companies submitted 44 applications, and incentives have already been allocated for one project.

"Domestically, we are not manufacturing speciality steel, but I personally request our steelmakers to invest in speciality steel plants. If you succeed in producing speciality steel domestically, it will boost capacity and production in the country," Kumaraswamy said.

"The PLI scheme is a major step towards realizing the Prime Minister's (Narendra Modi) vision of self-reliance. India is the second-largest producer and consumer of steel, yet we still import certain high-grade varieties. This scheme aims to bridge that gap by promoting domestic production."  PLI Scheme 1.1 covers five product categories in line with the existing PLI scheme, namely coated/plated steel products, high strength/wear-resistant steel, speciality rails, alloy steel products & steel wires and electrical steel.

These products are utilized in various applications, including white goods, transformers, automobiles, and other specialized industries.