Govt announces new round of steel PLI scheme with an outlay of Rs 4,400 crore

Govt announces new steel PLI scheme with an outlay of Rs 4,400 crore

Government has on January 7 announced a new round of steel Production-Linked Incentive (PLI) scheme with a total outlay of Rs 4,400 crore to attract more steel companies and more investments.

"We are launching steel PLI 1.1. After discussing with industry, we realised there was more capacity for specialised steel. Last year, we produced 180 million tonnes of steel. India seeing 12-13% growth in steel demand. By 2030 we will need 300 million steel," said Steel Secretary Sandeep Poundrik.

Last date to file application is January 31, 2025, which will not be extended, he said.

"In steel PLI 1.0 Rs 4,000 crore is still left, which will be utilised for PLI 1.1. We had substantial savings in PLI 1.0. We have invited applications under the same allocation with more flexibility after modifying thresholds," added Poundrik.

Steel PLI 1.0 scheme had attracted investments worth Rs 27,106 crore, envisaging creation of 14,760 direct employment opportunities with an estimated production of 7.9 million tonnes of specialty steel. As of November 2024, companies have already invested Rs 18,300 crore and generated over 8,660 in employment.

"Under steel PLI 1.1 tenure of production will include coated and plated steel products, specialty rails. Eligibility includes end-to-end manufacturing. Changes made in PLI 1.1 include investment of Rs 3,000 crore, capacity creation is 50,000 tonne, and year-on-year growth is at 10%," said Poundrik about the contours of the new scheme.