India Launches PLI 1.2 Scheme to Boost Specialty Steel Sector

The Ministry of Steel, Government of India, is preparing to roll out the third round (PLI 1.2) of the Production Linked Incentive (PLI) Scheme for Specialty Steel. This project is part of the vision of Atmanirbhar Bharat of the government as it enhances the domestic production and reduces the reliance on imports within the major industries.

In July 2021, the scheme was passed by the Union Cabinet with a total outlay of 6322 crore. It aims to transform India into an assisting location of elevated and valued steel grades. It stimulates the companies to increase production, invest in more modern technology and produce important steel products that were earlier imported.

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The program targets the major industries, such as defence, power, aerospace, and infrastructure where the specialty steel demand is growing. It is seeking to increase value addition in India and enhance the position of the nation in the world steel market by encouraging production of high end steel in the country. Up to this point, the two initial phases of the PLI scheme have had committed investments of 43,874 crore out of which 22,973 crore was already invested.

More than 13000 jobs have been generated as a result of these rounds which is a good indication that the steel industry has seen a consistent growth in the capacity building and employment. The next round of the PLI 1.2 is likely to bring in new investors and intensify the involvement of the current participants.

As the world (global) demand increases and the policy structure is well established, this stage will be used to facilitate the development of the specialty steel industry in India and help the country achieve the long-term objective of self-reliance and industrial competitiveness.