Steel sector PLI may include capital goods

The Indian government is considering widening the scope of the production-linked incentive (PLI) scheme for steel manufacturing to include more products under it.

Capital goods companies that manufacture machinery for the steel industry could be one of the segments that can be included within the ambit of the PLI scheme for steel. It currently covers only speciality, or value-added, products in the steel sector. The steel ministry has asked industry representatives for their opinion on what they think should be included and sought their responses by the end of May. The second round of the scheme is likely to be rolled out after that.

The production-linked incentive scheme was launched in 2020, initially targeting only a few sectors. It has now been extended and covers as many as 14 sectors, including specialty steel.

The government has earmarked ₹6,322 crore for speciality steel under PLI scheme for five years to promote local manufacturing of these grades of steel. These products include coated and plated steel products, high-strength steel, specialty rails, alloy steel products and electrical steel that are used in sectors like automobile, defence and power.