The Indian government’s Production Linked Incentive (PLI) scheme for specialty steel has attracted significant investment commitments worth Rs 17,000 crore from companies such as Steel Authority of India Limited (SAIL), Tata Steel, ArcelorMittal Nippon Steel, JSW Steel, and Jindal Steel and Power, among others. The scheme aims to promote domestic production of specialty steel, which is not currently manufactured domestically. The PLI scheme offers incentives ranging from 3-4% of production value to encourage investment and boost output.
According to Union Steel Minister H D Kumaraswamy, the scheme aims to promote specialty steel production, which has applications in niche sectors such as white goods, transformers, and automobiles. He has appealed to domestic steelmakers to focus on specialty steel production, as India is yet to domestically manufacture this variant.
The PLI 1.1 scheme, launched in January 2022, is being implemented during the production period from 2025-26 to 2029-30. It covers five broad categories and 19 sub-categories of specialty steel products, including Coated/Plated Steel Products, High Strength/Wear Resistant Steel, Specialty Rails, Alloy Steel Products, and Steel wires, and Electrical Steel.
Twenty-five companies have submitted 42 applications under the scheme, committing investments worth Rs 17,000 crore. The government has allocated a budget of Rs 6,322 crore for the first round of the scheme, which was notified in July 2021. The scheme is designed to incentivize production of specialty steel products, which are in high demand but not fully met by domestic production. The scheme is expected to boost the country’s steel production and help the industry become more competitive.