The Union Minister of Steel and Heavy Industries, H.D. Kumaraswamy, is all set to launch the much-anticipated ‘PLI Scheme 1.1’ for the steel industry tomorrow. The launch event is scheduled to take place at Vigyan Bhavan in New Delhi, where the Minister will also invite applications for the scheme.
This initiative, aimed at boosting steel manufacturing in India, comes as part of the ongoing efforts to improve domestic production and global competitiveness in the sector.
The PLI scheme, initially launched in November 2020, has already garnered significant attention and investment. It has attracted a total commitment of ₹27,106 crore, with direct employment for 14,760 individuals.
The scheme aims to achieve an estimated production of 7.9 million tonnes of specialty steel used in critical industries such as aerospace, defence, power, and automotive.
By November 2024, participating companies had already invested ₹18,300 crore and created over 8,660 jobs, demonstrating the scheme’s success in stimulating growth in the steel sector.
According to an official statement, the Ministry of Steel has been in continuous dialogue with participating companies, and feedback has led to the decision to relaunch the scheme.
This revision is intended to attract more participation from players in the steel industry, ensuring further growth and innovation. The PLI concept itself was conceived during the global lockdowns of 2020, emphasising the need for India to boost its domestic manufacturing capabilities in various sectors, including steel.
The Ministry of Steel is also working on a ‘Green Steel Mission,’ a key initiative that aims to assist the steel industry in reducing its carbon emissions. With an estimated cost of ₹15,000 crore, this mission seeks to align the sector with India’s broader environmental goals, including reaching the Net Zero target.
The mission not only focuses on promoting the use of renewable energy but also mandates government agencies to purchase green steel, thus contributing to the industry’s environmental sustainability.
Another critical aspect of India’s steel sector transformation is the National Green Hydrogen Mission, which is overseen by the Ministry of New and Renewable Energy. The mission integrates the steel sector into the national goal of producing and using green hydrogen.
This is expected to be a game-changer in reducing the carbon footprint of steel production and promoting a more sustainable future for the industry.
In September 2024, the Ministry of Steel released a report on ‘Greening the Steel Sector in India,’ which included recommendations from 14 Task Forces focused on various decarbonisation levers for the steel industry.
This was followed by the release of the Taxonomy of Green Steel earlier this month. This taxonomy provides standards for defining and categorising low-emission steel, laying the foundation for the green transition in the steel industry.
The government is also encouraging the recycling of steel scrap as part of its broader strategy to promote resource efficiency. The Steel Scrap Recycling Policy, which was introduced as part of these efforts, aims to increase the availability of domestically generated scrap.
This initiative is designed to boost the use of recycled steel in manufacturing, further supporting the goal of reducing the sector’s carbon emissions.
India’s steel sector is poised for a green revolution, thanks to these initiatives and the government’s continued efforts to modernise and decarbonise the industry.
The Ministry of New and Renewable Energy’s budgetary support of ₹455 crore for pilot projects under the National Green Hydrogen Mission until the financial year 2029-30 further demonstrates the government's commitment to achieving these goals.
Under the Green Hydrogen Mission, the Ministry of Steel has already awarded two pilot projects for producing Direct Reduced Iron (DRI) using 100 per cent hydrogen.
Additionally, another pilot project aims to use hydrogen in the existing Blast Furnace to reduce coal and coke consumption. These efforts mark a significant step towards making the steel industry more energy-efficient and environmentally friendly.
Follow us
