India’s ministry of steel is working on a second program to offer fiscal incentives to domestic companies to create new specialty steel capacities, or a Production Linked Incentive (PLI) Scheme 2.0, minister of steel Jyotirditya Scindia said in a statement on Thursday, April 27.
This comes close on the heels of the ministry of steel concluding 57 agreements with 27 steel companies to create a total of 25 million mt of new special steel production capacities for which the government would offer fiscal incentives from a fund of $770 million under the first PLI Scheme.
Expressing satisfaction with the robust response to the scheme from domestic steel companies, the minister said that the ministry is now looking at areas where steel is either still being imported or where a lot of value addition is still absent.
He said that, though the work of PLI Scheme 2.0 is still at a preliminary stage, it will be finalized and operationalized only after deep consultation with integrated and secondary steel mills to correctly understand where government fiscal intervention would be most effective.