+
PLI 1.1 Scheme Boosts India’s Specialty Steel Sector
Steel

PLI 1.1 Scheme Boosts India’s Specialty Steel Sector

The Ministry of Steel marked a key milestone with the signing of Memorandums of Understanding (MoUs) under the Production-Linked Incentive (PLI) Scheme 1.1 for specialty steel. Addressing the gathering, Union Steel Minister H.D. Kumaraswamy emphasised that the scheme is a significant step toward achieving Prime Minister Narendra Modi’s "Make in India" vision.

“The PLI scheme is a major step towards realizing the Hon’ble Prime Minister’s 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,” he said.

Launched in July 2021, the PLI scheme for specialty steel covers five broad categories and 19 sub-categories. The initiative ensures that only companies registered in India and engaged in end-to-end steel production are eligible for incentives. The scheme has generated strong industry participation, prompting the government to introduce Round 2, allowing more companies to benefit.

To encourage investment and boost output, the government is offering incentives ranging from 3-4% based on investment and production targets. In the first round, 44 applications were submitted by 23 companies, with incentives already disbursed for one project. The second round has seen even greater enthusiasm, with 25 companies submitting 42 applications, committing investments worth ?17,000 crore.

Lauding the efforts of officials in the Ministry of Steel and the MECON team for fast-tracking the implementation of PLI 1.1, Kumaraswamy said, “The dedication and efficiency shown by the ministry officials and the MECON team have been instrumental in accelerating this scheme. Their efforts are crucial in ensuring the success of this initiative.”

The minister also made a strong appeal to domestic steelmakers, urging them to focus on specialty steel production. “Domestically, we are not manufacturing specialty steel, but I personally request our steelmakers to invest in specialty steel plants. If you succeed in producing specialty steel domestically, it will boost capacity and production in the country. I urge all stakeholders to take up this challenge and contribute to our self-reliance,” he stated.

Highlighting the scheme’s impact, Kumaraswamy reiterated the government’s commitment to strengthening the steel industry. “The Government of India remains firmly committed to supporting the steel sector. The PLI Scheme has created strong momentum and brings us closer to self-reliance,” he noted.

The expansion of the scheme is expected to further enhance India’s global competitiveness in specialty steel production. The minister expressed gratitude to Prime Minister Modi for his leadership in driving this transformative initiative and congratulated all the companies that signed MoUs under PLI 1.1.

As the PLI scheme continues to gain momentum, industry leaders see it as a catalyst for reducing dependency on imports and positioning India as a global hub for high-quality steel production. Secretary for steel Shri Sandeep Poundrik,Shri Abhijit Narendra, Joint Secretary, Shri Ministry of Steel, Mr SK Verma, MD, MECON and other officials from the ministry of steel were present at event.

The Ministry of Steel marked a key milestone with the signing of Memorandums of Understanding (MoUs) under the Production-Linked Incentive (PLI) Scheme 1.1 for specialty steel. Addressing the gathering, Union Steel Minister H.D. Kumaraswamy emphasised that the scheme is a significant step toward achieving Prime Minister Narendra Modi’s Make in India vision. “The PLI scheme is a major step towards realizing the Hon’ble Prime Minister’s 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,” he said. Launched in July 2021, the PLI scheme for specialty steel covers five broad categories and 19 sub-categories. The initiative ensures that only companies registered in India and engaged in end-to-end steel production are eligible for incentives. The scheme has generated strong industry participation, prompting the government to introduce Round 2, allowing more companies to benefit. To encourage investment and boost output, the government is offering incentives ranging from 3-4% based on investment and production targets. In the first round, 44 applications were submitted by 23 companies, with incentives already disbursed for one project. The second round has seen even greater enthusiasm, with 25 companies submitting 42 applications, committing investments worth ?17,000 crore. Lauding the efforts of officials in the Ministry of Steel and the MECON team for fast-tracking the implementation of PLI 1.1, Kumaraswamy said, “The dedication and efficiency shown by the ministry officials and the MECON team have been instrumental in accelerating this scheme. Their efforts are crucial in ensuring the success of this initiative.” The minister also made a strong appeal to domestic steelmakers, urging them to focus on specialty steel production. “Domestically, we are not manufacturing specialty steel, but I personally request our steelmakers to invest in specialty steel plants. If you succeed in producing specialty steel domestically, it will boost capacity and production in the country. I urge all stakeholders to take up this challenge and contribute to our self-reliance,” he stated. Highlighting the scheme’s impact, Kumaraswamy reiterated the government’s commitment to strengthening the steel industry. “The Government of India remains firmly committed to supporting the steel sector. The PLI Scheme has created strong momentum and brings us closer to self-reliance,” he noted. The expansion of the scheme is expected to further enhance India’s global competitiveness in specialty steel production. The minister expressed gratitude to Prime Minister Modi for his leadership in driving this transformative initiative and congratulated all the companies that signed MoUs under PLI 1.1. As the PLI scheme continues to gain momentum, industry leaders see it as a catalyst for reducing dependency on imports and positioning India as a global hub for high-quality steel production. Secretary for steel Shri Sandeep Poundrik,Shri Abhijit Narendra, Joint Secretary, Shri Ministry of Steel, Mr SK Verma, MD, MECON and other officials from the ministry of steel were present at event.

Next Story
Infrastructure Urban

Naidu Seeks Rs 563 Crore For AP Sports Infrastructure

Andhra Pradesh Chief Minister N Chandrababu Naidu has sought Rs 563 crore from the Centre to boost sports infrastructure in the state, including Rs 538 crore for stadium development and Rs 25 crore to host the Khelo India Martial Arts Games 2025. Naidu made the request during a meeting with Union Youth Services and Sports Minister Mansukh Mandaviya in New Delhi on Wednesday.The CM urged early completion of Khelo India infrastructure projects in Tirupati, Rajahmundry, Kakinada, and Narasaraopeta, and called for an international-standard badminton training centre and a national aquatic sports hu..

Next Story
Infrastructure Transport

Tough Bidding Norms Slow NHAI Road Project Awards

Stringent bidding rules imposed by the Ministry of Road Transport & Highways (MoRTH) have led to a slowdown in project awards by the National Highways Authority of India (NHAI), despite a robust Rs 3.5 trillion pipeline. According to an HDFC Securities report, the shift to more cautious developer models now favours firms with strong balance sheets, as tighter qualification norms limit aggressive bidders.The revised norms mandate additional performance security, targeting the exclusion of players that previously submitted low bids—often 25 to 40 per cent below NHAI cost estimates—raisin..

Next Story
Infrastructure Transport

Mumbai Gets Coastal Nod for Next Promenade Phase

As Mumbai prepares to open two major sections of its expansive seafront promenade this week, the city’s civic authority has secured a key coastal clearance to advance further construction. The Maharashtra Coastal Zone Management Authority (MCZMA) has approved the commencement of work on the segment between Haji Ali and Baroda Palace, with tendering expected soon after project cost assessments.The promenade, stretching 7.5 km in length and 20 metres wide, is being designed as a flagship open space for walkers, joggers, and cyclists. Two critical stretches—2.75 km from Tata Garden to Haji Al..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?