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Government Launches PLI Scheme 1.1 for Specialty Steel to Enhance Domestic Production.

Goverment Scheme | Dated: 08 Jan 2025

On January 6, 2025, Union Minister of Steel and Heavy Industries, H. D. Kumaraswamy, launched the second round of the Production Linked Incentive (PLI) scheme for Specialty Steel, termed as PLI Scheme 1.1, at Vigyan Bhavan, New Delhi.

🎯 Key Highlights:

  • - The scheme will operate within the already allocated funds of Rs. 6,322 crore and will be implemented from Financial Year (FY) 2025-26 to FY 2029-30.
  • - The Production Linked Incentive (PLI) Scheme was introduced in March 2020 with the goal of enhancing India's manufacturing capabilities, decreasing dependency on imports, and promoting exports. The scheme provides financial incentives based on measurable outcomes, including increased production and higher incremental sales.

💡 Other Important Facts:

  • (i) The PLI Scheme 1.1 targets 5 product categories, building upon the existing PLI Scheme: Coated/Plated Steel Products, High Strength/Wear-Resistant Steel, Specialty Rails, Alloy Steel Products & Steel Wires, and Electrical Steel.
  • (ii) In the second round of the PLI Scheme, investment and capacity creation thresholds for Cold-Rolled Grain-Oriented (CRGO) steel have been reduced to Rs. 3,000 crore and 50,000 tonnes to encourage participation in this category.

📚 Test Your Knowledge:

Recently, the Government launched which scheme to boost the production of specialty steel?

Correct Answer: PLI Scheme 1.1

🚀 Quick Recap: