Govt. may launch phase 2 of speciality steel PLI

The incentive will be applied to steel used in automobiles and defence equipment

January 27, 2023

The government has allocated INR 6,322 crore for the speciality steel PLI

The remaining funds from the first round of PLI will be extended into the scheme’s second phase

The PLI scheme offers financial incentives of 4-12% on incremental production to steelmakers

To receive the PLI benefits, the allocated companies have committed an investment of INR 42,500 crore

The Indian government is planning to launch a second edition of the Production-Linked Incentive (PLI) scheme for speciality steel, according to media reports. The incentive will be applied to steel used in automobiles and defence equipment. 

In the first round, the government had allocated INR 6,322 crore for the speciality steel PLI, for which 30 companies have been selected. Contracts for these are expected to be signed by the end of January. According to the reports, the remaining funds from the first round of PLI will be extended into the scheme’s second phase. 

To receive the PLI benefits, the allocated companies have committed an investment of INR 42,500 crore to increase the domestic capacity of speciality steel manufacturing by 26 million tonnes (mt).

According to the reports, The PLI scheme offers financial incentives of 4-12% on incremental production to steelmakers against a committed investment for increasing output of five speciality steel categories over a five-year period. It was launched in October 2021. 

With such initiatives, the government plans to reduce dependence on high-value steel products, and push exports of value-added steel products. 

Source: Economic Times

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