According to a senior industry official interviewed by ET, capital goods companies that produce machinery for the steel industry could be added to the production-linked incentive (PLI) scheme for steel manufacturing. Currently, the scheme focuses on specialty or value-added products in the steel sector. However, the government is exploring ways to widen the scheme’s scope and cover more products.
The official revealed that the Ministry of Steel has solicited feedback from industry representatives on what additional products could be included in the PLI scheme for steel. Responses are expected by the end of May, with the second phase of the scheme set to launch after that.
The PLI scheme was first launched in 2020, targeting a few sectors, but it has since been expanded to cover 14 sectors, including specialty steel. As part of the scheme, the government has allocated ₹6,322 crore for the local manufacturing of coated and plated steel products, high-strength steel, specialty rails, alloy steel products, and electrical steel used in the automobile, defence, and power sectors.
Although ET reached out to the Ministry of Steel for comment, they did not respond before press time on Tuesday.