The Indian steel ministry-sponsored second phase production-linked investment scheme (PLI) has received an investment commitment of $1.95 billion for creating new specialty steelmaking capacity in the country, a ministry statement said on Wednesday, March 26.
The PLI scheme for specialty steel was first launched in 2021, offering fiscal incentives in the range of three to four percent of the capital invested in creating new specialty steelmaking capacities across five categories and 19 sub-categories.
The scheme had evoked a good industry response prompting the government to launch a second version.
During the first round, 23 companies had filed 44 applications, with one project already receiving the committed fiscal incentive. The second round has seen a better response, with 25 firms filing 42 applications and pledging $1.95 billion of investments, the ministry said.
“India is the world's second-largest producer and consumer of steel, but we still depend on imports for some of the high-grade varieties. The PLI scheme aims to fill this gap and foster self-reliance,” it said.