Govt Likely To Approve Rs 4,000-Crore PLI Scheme For Specialty Steel Production


(MENAFN- KNN India) New Delhi, Oct 28 (KNN) A high-level government committee is expected to approve a Rs 4,000-crore production linked incentive (PLI) scheme next month, aimed at enhancing domestic specialty steel production and reducing import dependency.

The initiative, known as PLI 2.0, will be evaluated by the empowered group of secretaries (EGoS), marking a significant step toward revitalising the steel sector, reported Mint.

The scheme's revival comes after its initial phase, launched in 2021, faced challenges including weak demand, administrative hurdles, and limited participation from domestic manufacturers.

The renewed push aligns with India's ambition to advance its position in the global steel value chain and compete with established steelmaking nations such as Japan and South Korea.

Industry stakeholders have actively engaged with the Union steel ministry, providing input on potential import substitution products that would strengthen the Atmanirbhar Bharat (Self-Reliant India) initiative.

The proposed scheme will utilise approximately Rs 4,000 crore remaining from the first phase, maintaining similar parameters and offering production incentives for up to five years, according to sources familiar with the matter who requested anonymity.

Specialty steel, the focus of this initiative, undergoes various enhancement processes including coating, plating, and heat treatment to create high-value products.

These advanced materials serve crucial sectors including defence, space, power, automotive, and specialised capital goods manufacturing, positioning them as strategic assets for industrial growth.

(KNN Bureau)

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KNN India

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