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.

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