Production Linked Incentive Scheme 1.1

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About Production Linked Incentive Scheme 1.1:

It shall be implemented during the production period of FY 2025-26 to FY 2029-30.
It covers five (5) product categories in line with the existing PLI Scheme, namely Coated / Plated Steel Products, High Strength / Wear resistant Steel, Specialty Rails, Alloy Steel Products & Steel wires and Electrical Steel.
- These products have a wide range of application, from white goods to transformers to Automobiles and other niche sectors.
Changes in scheme:
- Reduction in threshold investment & capacity for the CRGO product sub-categories, allowing carry forward of excess production to the immediately following year for the purpose of claiming incentive and reduction in threshold investment under capacity augmentation mode.
- Not all companies would need to install new mills.
- Recognising the importance of producing quality steel, energy efficiency and other process improvements, companies investing in augmentation of existing capacities will be allowed to participate in the scheme.
The Centre had earlier introduced the PLI scheme to encourage domestic production of specialty steel and lower imports by drawing in capital investments.
It was initially launched for three sectors to address the need to boost domestic manufacturing during COVID-19 lockdown, the PLI scheme was later extended to include steel in November 2020.

What is Cold-rolled grain-oriented steel (CRGO)?

It is a high-value steel used in production of power transformers used in HT power distribution. The technology to make CRGO is not available with any of the Indian steelmakers.