Govt to Relaunch PLI Scheme for Specialty to Boost Domestic Production

Production-Linked Incentive for the specialty steel sector will be a fresh round in which the government will announce the scheme on Monday, which, in turn, will increase domestic production, cut imports, and draw further investments.

The Steel Minister H.D. Kumaraswamy shall monitor this scheme as a follow-up to the earlier success of generating huge investments and creating jobs.

Launched in November 2020 as part of the labor-driven general initiative to promote domestic manufacturing during the lockdowns of the Covid-19 pandemic, the PLI scheme for specialty steel has become extraordinarily successful with ₹27,106 crore investments, 14,760 direct jobs, and proposed production output of 7.9 million tonnes of high-grade steel. Specialty steel is primarily used in defense, automobiles, and electrical manufacture, and reducing import dependence is critical.

As of November 2024, participating companies have made investments of ₹18,300 crore, providing more than 8,660 jobs. Despite this, the government has pointed out shortfalls in the performance of the earlier scheme, which drove the reworking and expansion effort.

Regular feedback from stakeholders highlighted the need for greater participation, paving the way for this new round of incentives.

“The fresh round of the PLI scheme reflects our commitment to further boosting domestic production of specialty steel,” a government official said. The scheme aims to address gaps in the domestic steel industry while promoting investments to meet growing demand in high-value sectors like defense and automobiles.

The PLI scheme was initially launched for three sectors and later expanded to include steel in recognition of its strategic importance. However, the government acknowledged that specialty steel remains an area requiring more focused efforts. The upcoming relaunch aims to bridge this gap by offering revised incentives to drive higher participation and productivity.

This renewed push underscores the government’s broader “Make in India” vision, focusing on economic growth, self-reliance, and job creation in key industrial sectors.