The Indian government has announced that the second round of the Production-Linked Incentive (PLI) scheme for speciality steel has attracted investment commitments worth Rs 17,000 crore. This initiative, aimed at boosting India’s global competitiveness in steel production, marks a significant step towards enhancing the country’s self-reliance.
The PLI scheme, launched in July 2021, covers five key categories and 19 sub-categories of speciality steel. Only companies based in India that are involved in complete steel production processes are eligible for the incentives. In the first round, 44 applications from 23 companies were received, with one project already receiving its incentive. The second round has seen an even stronger response, with 25 companies submitting 42 applications.
The government is offering 3-4% incentives based on investment and production targets. The scheme's expansion is expected to reduce India’s reliance on imported high-grade steel by promoting domestic production, aligning with the government’s vision of self-reliance and economic growth.
The Ministry of Steel has played a key role in fast-tracking the implementation of the PLI scheme, working alongside MECON to ensure its swift rollout. As part of ongoing efforts to develop the sector, the government is encouraging domestic steelmakers to invest in speciality steel plants, which will help expand production capacity in the country.
With the second round of the scheme now underway, it is expected to significantly boost India’s speciality steel sector and provide greater opportunities for domestic manufacturers, further cementing its position as a leading global steel market.
