India prepares PLI phase 2 for steel sector growth

10 Aug 2023 CW Team

The Indian government is actively developing a follow-up to the performance-linked incentive (PLI) program aimed at the steel sector, with a primary emphasis on import substitution. Nagendra Nath Sinha, the steel secretary, revealed that the steel ministry is poised to introduce "PLI-2," which will address the specific requirements of sectors like the Indian Railways.

During the initial phase of the PLI scheme, companies committed to investing ₹2.953 billion, resulting in a downstream capacity increase of 24.78 million tonnes. The government has allocated ₹6.32 billion for providing incentives to the steel industry through the PLI initiative.

Anticipating visible results from 2026, Sinha responded to queries about the demand for steel products by the Indian Railways and the necessity for imports to fulfil these needs. To cater to the railway's special grade requirements, agreements have been inked by the Steel Authority of India Ltd (SAIL) for asymmetric and hardened rails.

SAIL, a state-run enterprise, currently fulfils the entire demand for R-260 grade steel rails of the national transporter. Furthermore, the introduction of a new head-hardened rail grade, R-350/1175, is projected for 2023, enhancing train speed. Despite its crucial role in infrastructure development, the domestic steel sector encounters rail rake shortages during peak power demand months due to coal transportation.

In response, the steel secretary outlined new initiatives aimed at improving freight traffic and addressing the steel sector's needs. Over 2,000 wagons are being introduced monthly to enhance wagon availability. Additionally, newer steel grades for containers, authorized by the Bureau of Indian Standards, have been embraced by leading steel producers such as SAIL, Tata Steel, and JSW Steel.

The PLI-2 initiative aligns with India's strategic intent to bolster domestic manufacturing, reduce imports, and advance self-reliance in critical sectors.

Products

06 Oct 2025

TOTO India Launches Premium G & L Showers with Sleek Faucet Range

TOTO India has launched its G Shower and L Shower series, alongside an expanded range of GT, LH, and Pull-Out lavatory faucets. The collection blends advanced technology, refined aesthetics, and everyday comfort, staying true to TOTO’s philosophy of creating spaces that are both beautiful and functional. The G Shower series delivers the 3Rs of showering: Relaxing, Refreshing, and Revitalizing. Features include the Calming Shawl spray mode, Warm Spa technology, and multiple overhead and hand-shower options across eight finishes. The L Shower complements this with easy-to-use controls sui..

Hero Future Energies Secures Funding for 120 MW Hybrid Project

Hero Future Energies (HFE), through its SPV Clean Renewable Energy Hybrid Three, has secured Rs 19.08 billion in funding from the State Bank of India (lead) and Canara Bank. The funds will be used to develop and construct HFE’s 120 MW renewable energy hybrid project at Kurnool, Andhra Pradesh. The project, contracted with SJVN, integrates wind, solar, and storage technologies to deliver reliable peak power. With a 21-year repayment period, the funding ensures timely execution and the commencement of commercial operations. The financial closure demonstrates continued lender confidence in..

IOC GPS Renewables Raises Rs 8.36 billion Debt for Compressed Biogas Plants

IOC GPS Renewables Private Limited (IGRPL), a joint venture between IndianOil Corporation and GPS Renewables, has raised Rs 8.36 billion (approx. US$ 95 million) in debt financing from Indian Bank to execute nine Compressed Biogas (CBG) projects across India. The funding is the largest single-bank debt raise in the CBG sector and the first fully non-recourse financing in India for these projects. The plants—four in Haryana, three in Uttar Pradesh, one each in Chhattisgarh and Andhra Pradesh—will each produce 15 tonnes of CBG per day using paddy straw as feedstock. All nin..