Rs 17,000 Cr Investment in Speciality Steel PLI Scheme

New Delhi, Mar 24 (PTI) A total of 25 companies signed 42 agreements with the government to manufacture high-end steel at an estimated investment of Rs 17,000 crore under the second round of the PLI Scheme for speciality steel, an official statement said on Monday.

In January, Union Minister of Steel and Heavy Industries HD Kumaraswamy launched the second round of the PLI scheme for speciality steel, termed PLI Scheme 1.1.

"The second round has seen greater enthusiasm, with 25 companies submitting 42 applications, committing investments worth Rs 17,000 crore," the Ministry of Steel said.

The companies signed memorandums of understanding (MoUs) with the Ministry of Steel to produce five types of high-grade steel.

In the first round, 44 applications were submitted by 23 companies, with incentives already disbursed for one project.

"Domestically, we are not manufacturing speciality steel, but I personally request our steelmakers to invest in speciality steel plants. If you succeed in producing speciality steel domestically, it will boost capacity and production in the country," Kumaraswamy said.

"The PLI scheme is a major step towards realizing the Prime Minister's (Narendra Modi) vision of self-reliance. India is the second-largest producer and consumer of steel, yet we still import certain high-grade varieties. This scheme aims to bridge that gap by promoting domestic production."

PLI Scheme 1.1 covers five product categories in line with the existing PLI scheme, namely coated/plated steel products, high strength/wear-resistant steel, speciality rails, alloy steel products & steel wires and electrical steel.

These products have a wide range of applications, from white goods to transformers to automobiles and other niche sectors.