PLI Scheme 1.1: Big Boost to Job Creation on Cards! Centre to Enhance Steel Manufacturing, Industry Set for Record Growth

PLI Scheme 1.1: The Indian government is taking significant steps to enhance steel manufacturing in the country with the launch of the PLI (Production-Linked Incentive) Scheme 1.1. This initiative, spearheaded by Union Minister of Steel and Heavy Industries H.D. Kumaraswamy, aims to drive investment, create jobs, and further strengthen India's position in global steel production.

Launched in November 2020, the PLI scheme has already attracted substantial investments and created numerous jobs. The revised scheme promises even greater benefits for the industry.

The Current Impact of PLI Scheme

The initial version of the PLI scheme has garnered a commitment of Rs 27,106 crore in investments. This funding is expected to create direct employment for over 14,000 people and generate the production of 7.9 million tonnes of specialty steel, which serves vital sectors such as aerospace, defense, power, and automotive. As of November 2024, companies have already invested Rs 18,300 crore and created over 8,660 jobs.

The Ministry of Steel has been working closely with participating companies to gather feedback and refine the scheme. This updated version of the PLI Scheme 1.1 is designed to attract more players to invest in steel manufacturing, further boosting the industry’s growth.

Green Steel Mission for Sustainable Growth

The government is also focusing on making steel production environmentally sustainable through the Green Steel Mission. This initiative, with an estimated cost of Rs 15,000 crore, aims to reduce carbon emissions in the steel industry. It involves introducing incentives for using renewable energy, along with government mandates to procure green steel.

The Steel Ministry is integrating this mission with India's broader sustainability goals. The National Green Hydrogen Mission, led by the Ministry of New and Renewable Energy, is one such initiative. The goal is to use green hydrogen for steel production, contributing significantly to the decarbonisation efforts.

The Road Ahead for India's Steel Industry

With the growing focus on green steel, India is setting its sights on becoming a global leader in steel manufacturing. To position the country as a key player, the government is working on a comprehensive strategy that focuses on raw materials, investments, technology, and steel exports.

In addition to this, a Working Group has been created to develop India’s Steel Global Outlook Strategy. This strategy will outline specific areas for international collaboration and create action plans to strengthen steel production in the country.

The PLI Scheme 1.1 and the Green Steel Mission are part of India's broader strategy to increase domestic production while minimizing environmental impact. With these efforts, the Centre is confident that India's steel sector will become more competitive, sustainable, and a key contributor to the global economy.