Union Minister for Steel H.D. Kumaraswamy launched the second iteration of the Production-Linked Incentive (PLI) scheme for specialty steel, PLI Scheme 1.1, at Vigyan Bhawan. The scheme aims to boost domestic production, reduce imports, and establish India as a global leader in specialty steel. The application window opened on January 6, 2025, and will close on January 31, 2025. The scheme runs from FY 2025–26 to FY 2029–30, with incentives disbursed until FY 2030–31. 

Kumaraswamy emphasised the importance of specialty steel for various sectors, including infrastructure, defense, automobiles, and renewable energy. He highlighted the scheme's potential to contribute to the Atmanirbhar Bharat initiative. The minister also touted the successes of the first round of the PLI scheme. “Specialty steel is the backbone of India’s growth.” 

Kumaraswamy invited companies to participate in what he called a "transformative initiative." He believes the scheme demonstrates the government's commitment to strengthening domestic production and fostering innovation. 

The first iteration of the PLI scheme generated Rs 271 billion in investments, created 14,760 direct jobs, and added 7.90 million tonnes to specialty steel production capacity. By October 2024, INR 17,581 crore had been invested, leading to the creation of over 8,660 jobs. 

“The success of PLI 1.0 is inspiring and reinforces our resolve to advance India’s steel industry on the global stage,” added Kumaraswamy. 

What does the new scheme indicate? PLI Scheme 1.1 incorporates industry feedback and includes key changes. These updates allow capacity augmentation for all participants, mandate investments before incentive claims, and permit excess production to offset shortfalls in the following year. 

Projects already covered under PLI 1.0 MoUs are not eligible for the new scheme. This measure aims to ensure fairness and prevent overlap between the two schemes. The new scheme offers revised incentive rates. 

India is the world's second-largest steel producer and consumer. The country's domestic steel consumption has grown by over 12% annually since 2022. This growth is attributed to strong economic fundamentals and substantial infrastructure investments. 

Kumaraswamy reiterated India's goal of reaching 300 million tonnes of annual steel production by 2030. This target was initially set by Prime Minister Narendra Modi. The minister urged the industry to capitalise on this opportunity to innovate, invest, and partner with the government. He believes this collaboration can help achieve the stated goals and bolster Brand India. 

Atmanirbhar Bharat initiative: The launch event at Vigyan Bhawan was attended by various stakeholders. Secretary for steel Sandeep Poundrik, SAIL secretary Amarendu Prakash, steel ministry officials, distinguished guests, and steel industry representatives were present. Their attendance signifies a shared vision for the future of India's steel sector. The government hopes the PLI 1.1 scheme will further propel the growth of the specialty steel industry in India. The focus on innovation and domestic production aligns with the broader Atmanirbhar Bharat initiative.