Govt To Unveil PLI Scheme 1.1 to Strengthen Steel industry

The government plans to launch the next stage of its Production-Linked Incentive (PLI) scheme for the steel industry on January 6th. The newly introduced program, called ‘PLI scheme 1.1’, aims to boost the local manufacturing of specialty steel and decrease dependence on imports.

The initial PLI scheme for specialty steel, introduced by the government in 2020, effectively drew investments of ₹27,106 crore, resulting in the generation of 14,760 direct jobs. As of November 2024, organizations had invested ₹18,300 crore and created more than 8,660 job opportunities. Nonetheless, in spite of these accomplishments, additional involvement is necessary to satisfy the increasing need for premium steel, particularly in industries such as defense, automotive, and electricals.

The latest phase of the PLI scheme is focused on remedying the deficit in specialty steel manufacturing. The program was implemented to encourage local manufacturing, which continues to fall short of expectations, especially concerning high-quality goods. The government has maintained ongoing discussions with industry stakeholders to enhance the program and promote greater investment in this essential sector.

PLI, originally introduced amid the COVID-19 pandemic, aimed to stimulate and enhance domestic manufacturing through financial incentives. The initiative, launched in 2020, has now broadened to encompass industries such as steel, aiming to foster growth in sectors vital for the country's progress.