Government’s PLI 2.0 to reshape steel industry

Industry steel players

All of the steel industry players are expanding their capacity, and in order to facilitate commercial dealings, the government has been helping them with project permissions. However, the Indian Steel Association (ISA) stated that after years of 'dumping of steel products,' especially from China and Vietnam, the sector will continue to be concerned about rising imports and high raw material prices in the coming year. 

Meanwhile, producers of steel, such as the state-owned SAIL and RINL, will continue to expand the range of products they offer in order to meet the expanding demands of different industries that use steel. According to Tata Steel, there are signs of a recovery in demand due to more infrastructure spending in developed nations, which is supporting global efforts to reduce carbon emissions.

PLI 2.0 for steel sector

Union minister Faggan Singh Kulaste has revealed that the government is actively developing the Production Linked Incentive (PLI) plan 2.0, emphasising on ensuring an ample supply of raw materials for the steel sector by 2024. Predicting a surge in steel demand due to robust economic growth, the government's plan to address concerns within the industry regarding potential spikes in imports and raw material costs arising from geopolitical uncertainties.

Kulaste highlighted preparations for PLI 2.0 in the steel sector and discussed ongoing deliberations at various levels regarding the government's objectives for the industry in 2024. In an interview with PTI, the Minister of State (MoS) for Steel assured that the government is committed to securing a reliable raw material supply for the steel industry while promoting the use of scrap.