+
Steel Minister H.D. Kumaraswamy launches PLI Scheme 1.1 for industry
ECONOMY & POLICY

Steel Minister H.D. Kumaraswamy launches PLI Scheme 1.1 for industry

Union Minister for Steel H.D. Kumaraswamy launched the second iteration of the Production-Linked Incentive (PLI) scheme for specialty steel, PLI Scheme 1.1, at Vigyan Bhawan. The scheme aims to boost domestic production, reduce imports, and establish India as a global leader in specialty steel. The application window opened on January 6, 2025, and will close on January 31, 2025. The scheme runs from FY 2025–26 to FY 2029–30, with incentives disbursed until FY 2030–31. 

Kumaraswamy emphasised the importance of specialty steel for various sectors, including infrastructure, defense, automobiles, and renewable energy. He highlighted the scheme's potential to contribute to the Atmanirbhar Bharat initiative. The minister also touted the successes of the first round of the PLI scheme. “Specialty steel is the backbone of India’s growth.” 
Kumaraswamy invited companies to participate in what he called a "transformative initiative." He believes the scheme demonstrates the government's commitment to strengthening domestic production and fostering innovation. 

The first iteration of the PLI scheme generated Rs 271 billion in investments, created 14,760 direct jobs, and added 7.90 million tonnes to specialty steel production capacity. By October 2024, INR 17,581 crore had been invested, leading to the creation of over 8,660 jobs. 

“The success of PLI 1.0 is inspiring and reinforces our resolve to advance India’s steel industry on the global stage,” added Kumaraswamy. 

What does the new scheme indicate? PLI Scheme 1.1 incorporates industry feedback and includes key changes. These updates allow capacity augmentation for all participants, mandate investments before incentive claims, and permit excess production to offset shortfalls in the following year. 

Projects already covered under PLI 1.0 MoUs are not eligible for the new scheme. This measure aims to ensure fairness and prevent overlap between the two schemes. The new scheme offers revised incentive rates. 
India is the world's second-largest steel producer and consumer. The country's domestic steel consumption has grown by over 12% annually since 2022. This growth is attributed to strong economic fundamentals and substantial infrastructure investments. 

Kumaraswamy reiterated India's goal of reaching 300 million tonnes of annual steel production by 2030. This target was initially set by Prime Minister Narendra Modi. The minister urged the industry to capitalise on this opportunity to innovate, invest, and partner with the government. He believes this collaboration can help achieve the stated goals and bolster Brand India. 

Atmanirbhar Bharat initiative: The launch event at Vigyan Bhawan was attended by various stakeholders. Secretary for steel Sandeep Poundrik, SAIL secretary Amarendu Prakash, steel ministry officials, distinguished guests, and steel industry representatives were present. Their attendance signifies a shared vision for the future of India's steel sector. The government hopes the PLI 1.1 scheme will further propel the growth of the specialty steel industry in India. The focus on innovation and domestic production aligns with the broader Atmanirbhar Bharat initiative. 

Union Minister for Steel H.D. Kumaraswamy launched the second iteration of the Production-Linked Incentive (PLI) scheme for specialty steel, PLI Scheme 1.1, at Vigyan Bhawan. The scheme aims to boost domestic production, reduce imports, and establish India as a global leader in specialty steel. The application window opened on January 6, 2025, and will close on January 31, 2025. The scheme runs from FY 2025–26 to FY 2029–30, with incentives disbursed until FY 2030–31. Kumaraswamy emphasised the importance of specialty steel for various sectors, including infrastructure, defense, automobiles, and renewable energy. He highlighted the scheme's potential to contribute to the Atmanirbhar Bharat initiative. The minister also touted the successes of the first round of the PLI scheme. “Specialty steel is the backbone of India’s growth.” Kumaraswamy invited companies to participate in what he called a transformative initiative. He believes the scheme demonstrates the government's commitment to strengthening domestic production and fostering innovation. The first iteration of the PLI scheme generated Rs 271 billion in investments, created 14,760 direct jobs, and added 7.90 million tonnes to specialty steel production capacity. By October 2024, INR 17,581 crore had been invested, leading to the creation of over 8,660 jobs. “The success of PLI 1.0 is inspiring and reinforces our resolve to advance India’s steel industry on the global stage,” added Kumaraswamy. What does the new scheme indicate? PLI Scheme 1.1 incorporates industry feedback and includes key changes. These updates allow capacity augmentation for all participants, mandate investments before incentive claims, and permit excess production to offset shortfalls in the following year. Projects already covered under PLI 1.0 MoUs are not eligible for the new scheme. This measure aims to ensure fairness and prevent overlap between the two schemes. The new scheme offers revised incentive rates. India is the world's second-largest steel producer and consumer. The country's domestic steel consumption has grown by over 12% annually since 2022. This growth is attributed to strong economic fundamentals and substantial infrastructure investments. Kumaraswamy reiterated India's goal of reaching 300 million tonnes of annual steel production by 2030. This target was initially set by Prime Minister Narendra Modi. The minister urged the industry to capitalise on this opportunity to innovate, invest, and partner with the government. He believes this collaboration can help achieve the stated goals and bolster Brand India. Atmanirbhar Bharat initiative: The launch event at Vigyan Bhawan was attended by various stakeholders. Secretary for steel Sandeep Poundrik, SAIL secretary Amarendu Prakash, steel ministry officials, distinguished guests, and steel industry representatives were present. Their attendance signifies a shared vision for the future of India's steel sector. The government hopes the PLI 1.1 scheme will further propel the growth of the specialty steel industry in India. The focus on innovation and domestic production aligns with the broader Atmanirbhar Bharat initiative. 

Next Story
Building Material

UltraTech’s Limestone Mine Gets India’s First-Ever 7-Star Rating

UltraTech Cement, India’s largest producer of cement and Ready-Mix Concrete (RMC), has received top honours for sustainable mining practices. Thirteen of the company’s limestone mines were awarded star ratings by the Indian Bureau of Mines (IBM), Ministry of Mines, for FY 2023–24 during a ceremony held in Jaipur, Rajasthan. Among these, the Naokari Limestone Mine—part of UltraTech’s Awarpur Cement Works in Chandrapur, Maharashtra—was awarded India’s first-ever 7-star rating for a limestone mine, in recognition of exceptional performance in ‘Green Mining’. The remain..

Next Story
Infrastructure Urban

Sieger Parking Enters Mumbai Market, Expands West India Presence

Sieger Parking, a Coimbatore-headquartered specialist in automated and multi-level car parking systems, has announced its entry into Western India with the launch of a regional office in Mumbai. This move marks a key milestone in the company’s pan-India growth strategy and its commitment to delivering technology-driven, space-efficient parking solutions across urban India. The Mumbai office will serve as the regional headquarters for Maharashtra and neighbouring states, supporting end-to-end operations with on-ground sales, project management, and service teams. The aim is to fast-track..

Next Story
Resources

IGBC Green Kochi Conclave 2025 Champions Culture and Climate Action

The Indian Green Building Council (IGBC), part of CII, hosted the Green Kochi Conclave 2025 on 4 July at Hotel Holiday Inn, Kochi, under the theme “Tharavadu to Tomorrow: Weaving Kerala’s Heritage into a Sustainable Built Environment.” The event brought together policymakers, architects, developers, and thought leaders to discuss Kerala’s progress in blending cultural heritage with sustainable design.  Kerala is emerging as a frontrunner in climate-resilient development, thanks to passive design strategies, rainwater harvesting, cool roof initiatives, and the widespread adopt..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?