Specialty Steel PLI: investment of INR 10,000 Cr in FY-25

The government expects an investment of INR 10,000 crore in the production-linked incentive (PLI) for specialty steel during the fiscal year 2025. This sum will be in addition to the INR 16,000 crore projected for the current financial year.

Image Credit: Shutterstock 

In the upcoming fiscal year (FY25), the government is projecting an investment of INR 10,000 crore through the production-linked incentive (PLI) scheme for specialty steel, supplementing the anticipated INR 16,000 crore for the ongoing financial year.

Till December-end, companies chosen under the production-linked incentive (PLI) for specialty steel have already invested Rs 12,900 crore. The Ministry of Steel reports an additional expected investment of Rs 3,000 crore before March. These companies had initially committed to investments totaling Rs 21,000 crore by the conclusion of the current financial year.

With the increasing investments in specialty steel and the commencement of production, the interim Budget has allocated INR 270 crore for incentive payments in the fiscal year 2025. In the current financial year, the revised estimates indicate a nominal provision of INR 2.36 crore.

The scheme has seen the execution of 57 Memorandums of Understanding (MoUs), aiming to create an additional capacity of 25 million tonnes for the production of specialty steel grades, involving an investment of INR 29,500 crore. The production-linked incentive (PLI) for specialty steel was officially notified in July 2021.

Currently, five speciality steel units have initiated production, and an additional nine facilities are anticipated to commence production in the present quarter.

“The Ministry of Steel and other relevant government departments have been  proactively engaging with the PLI beneficiaries to resolve issues faced by companies and facilitate them to meet their commitments under the scheme,” according to a statement by the ministry.