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Rs 12,900 Crore Invested in Domestic Steel Under PLI Scheme

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Editorial Team
Author: Editorial Team
1 min.read
Production-Linked Incentive, PLI scheme, specialty steel, Ministry of Steel, production, equipment procurement

An official statement revealed that the domestic steel sector has already seen an investment of approximately Rs 12,900 crore under the Production-Linked Incentive (PLI) scheme for specialty steel. In March 2023, 57 Memorandum of Understandings (MoUs) were signed, targeting an investment of about Rs 29,500 crore by FY28. The PLI scheme aims to add 25 MT capacity for specialty steel grades, creating around 17,000 job opportunities, according to the Ministry of Steel.

Providing an update, the ministry stated, “As of December 2023, the selected companies have already invested about Rs 12,900 crore against an investment commitment of Rs 21,000 crore up to the current financial year.” The statement expects an additional Rs 3,000 crore investment from these companies during FY24. Five units established under the PLI scheme have commenced production, and nine more units are anticipated to start production in this quarter.

Looking ahead, the ministry projects a Rs 10,000 crore investment in FY25. It acknowledges the prolonged gestation period for investments in the steel sector, influenced by factors such as equipment procurement, often sourced internationally. Delays may occur due to geopolitical issues, unforeseen events, natural disasters, and market changes. The ministry, in collaboration with other government departments, is actively addressing challenges faced by PLI beneficiaries, aiming to expedite clearances, issue operating procedures for Indian visas, and engage continuously with stakeholders to resolve concerns.

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