Specialty steel gets new PLI

The government Monday launched production-linked incentives scheme (PLI) 1.1 for specialty steel, revamping the previous version to make it more investor friendly by lowering investment threshold and easing compliance requirements, aiming to reduce India's dependence on specialty steel imports.

The government has set an investment threshold of 50% for companies to be eligible for incentives under the PLI 1.1. Companies will be eligible for incentives even if the investments are made to augment their existing capacity to manufacture specialty steel.



"The second round of PLI reflects the industry's feedback and focuses on critical product categories that drive sectors like infrastructure, renewable energy and automobile," HD Kumaraswamy, minister of steel, said at the launch of PLI 1.1.


The investment threshold for cold rolled grain oriented (CRGO) steel under the scheme has been brought down to ₹2,000 crore from ₹5,000 crore, while the required capacity creation has been lowered to 50,000 tonnes from 200,000 tonnes. The scheme also allows companies to carry forward excess capacity created to the following year if they overachieve their target for a year.

"Specialty steel isn't produced enough in the country. We have 50,000 tonne CRGO steel capacity, but the consumption is 1.2-1.3 lakh tonnes," steel secretary Sandeep Poundrik said.

PLI 1.1 has been carved out of PLI 1.0-the unused portion of about Rs 4,400 crore of the earlier scheme's allocation has been allocated to PLI 1.1 Applications under PLI 1.1 opened on Monday and will close on last day of January.