The government will reopen the window for accepting applications under the Production Linked Incentive (PLI) scheme for speciality steel, in view of the high investor interest in the sector.
The PLI 1.1 Scheme for the steel sector will be launched on Monday by minister of steel H D Kumaraswamy, sources said.
The reopening of the scheme for fresh applications will benefit companies who aren’t existing players in the fast-growing sector but plan to make a foray into it. It will also ensure that the targets set for the scheme in terms of incremental production and disbursement are met. There is also a demand from the industry to expand the list of speciality products under the scheme.
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Major steel companies like SAIL, Tata Steel, JSW, JSPL and ArcelorMittal Nippon Steel (AWNS) were among the applicants in the first phase of specialty steel PLI.
Specialty steel is superior to conventional alloy, with its higher strength, better physical and chemical properties, better biocompatibility, and improved process characteristics.
The PLI scheme for specialty steel was notified in October 2021. In all, 67 applications have been approved under the scheme, 66 in 2022-23 and just one in 2024-25.
It has an outlay of Rs 6,322 crore and is expected to bring in investment of approximately Rs 40,000 crores and capacity addition of 25 MT for speciality steel. The scheme is expected to give employment to about 5,25,000 people of which 68,000 will be direct employment.
PLI has attracted a commitment in investment of Rs 27,106 crore, direct employment of 14,760 and estimated production of 7.90 million tonnes of ‘Specialty Steel’ identified in the scheme. As of November 2024, companies have already invested Rs 18,300 crore and generated over 8,660 in employment.
The products covered by the scheme are coated or plated steel products, high strength wear resistant steel, speciality rails, alloy steel products and steel wires, and electrical steel.
The five year period of the scheme is from 2024-25 to 2030-31.
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