PLI Scheme 1.1 launched by Shri H.D. Kumaraswamy, Union Minister of Steel & Heavy Industries
Shri H.D. Kumaraswamy, Union Minister for Steel & Heavy Industries launched the Second Phase PLI Scheme for Specialty Steel, also known as PLI Scheme 1.1, in the presence of senior officials of the Ministry and captains of the industry at Vigyan Bhawan on January 6, 2025
Mr H D Kumaraswamy said the Steel Ministry has brought PLI Scheme 1.1 for specialty steel for five product categories which is similar to the current PLI scheme. Pli Scheme 1.1 will remain open from January 6 to January 31, 2025. He expressed hope that the industry will actively participate in investing and strengthening Brand India, reducing imports and positioning India as a global steel powerhouse. The changes made in the PLI scheme for specialty steel reflect the government’s commitment to strengthen domestic production, encourage innovation and reduce imports
Shri Sandeep Pokhriyal, Secretary, Ministry of Steel, mentioned that PLI Scheme 1.1 will be implemented during the financial year 2029-30 from the production period of 2025-26. He expressed hope that no contestants had participated in the eight sub-divisions in the previous round and this time there would be wider participation. Some changes have been included along with industry consultations to make the scheme more investor friendly, including reduction in investment and capacity fixed for CRGO product sub-categories, immediately moving additional production to the next year for the purpose of demanding incentives, and reducing limit investment under capacity addition mode
PLI Scheme 1.1 covers five (5) product categories under the present PLI Scheme, namely coated/plated steel products, high power/apparel resistant steel, specialty rails, alloy steel products and steel wires and electric steel. These products have wide applications ranging from white goods to transformers, automobiles and other sectors. The scheme will work within the funds initially allocated for the scheme i.e. Rs 6,322 crore.
The PLI rules have been amended based on industry feedback. Not all companies will have to set up new mills. Recognizing the importance of quality steel, energy efficiency and other process improvement generation, companies investing in existing capacity building will be allowed to participate in the scheme. In the guidelines uploaded on the web portal released by the Hon’ble Minister today, 50% of the limit mentioned in Annexure-3 will be invested in such sectors.
Cold-rolled grain-based steel (CRGO) is a high-value steel used in the production of power transformers used in HT power distribution. The technology to make CRGO is not available to any Indian steel maker. Keeping in view the strategic importance of being self-reliant in CRGO, the Steel Ministry has been holding regular meetings with stakeholders with an aim to increase the production of CRGO within the country. By reducing the investment and capacity creation limit to Rs 3,0 crore and Rs 50,0 read more
