The Ministry of Steel has inked Memoranda of Understanding with 55 companies for 85 projects, entailing an investment of Rs 11,887 crore. These projects aim to boost India’s speciality steel capacity by 8.7 million tonnes by 2030-2031, focusing on high-end segments like electrical steel, alloy, stainless steels, and coated products essential for strategic sectors. The agreements were formalized at Vigyan Bhavan as part of the third round of the Production-Linked Incentive (PLI) Scheme 1.2 for Specialty Steel, inaugurated by Minister of Steel H.D. Kumaraswamy.
Addressing the attendees post the MoU signing event, Kumaraswamy emphasized that PLI 1.2 marks a significant stride in establishing a resilient and globally competitive speciality steel ecosystem, in line with Prime Minister Narendra Modi’s vision. The scheme aligns with the national priorities of Make in India and Aatmanirbhar Bharat by promoting domestic capacity development in advanced steel products crucial for various sectors like automobiles, railways, defense, and aerospace. The launch of the third phase of the PLI Scheme responds to industry demands for sustained capacity expansion in speciality steel.
The PLI Scheme offers incentive rates ranging from 4% to 15% over five years to encourage investment, technology upgrades, and value addition, aiming to integrate Indian manufacturers into global value chains. Kumaraswamy highlighted that the scheme aims to bridge the structural gap by incentivizing domestic production, reducing foreign exchange outflow, and positioning India as a dependable global supplier of advanced steel. He also commended the achievements of the earlier rounds of the PLI Scheme, emphasizing the substantial progress in capacity creation and employment generation, with committed investments of Rs 43,874 crore under PLI 1.0 and 1.1.
Encouraging timely project implementation and the use of indigenous technologies, Kumaraswamy reiterated the Government’s commitment to resolving operational issues promptly. The success of PLI 1.2 is deemed crucial in India’s quest to emerge as a global hub for speciality steel manufacturing.
