Production Linked Incentive Scheme 1.1
07-01-2025
09:30 AM
1 min read

Overview:
Recently, the union Minister of Steel and Heavy Industries launched the second round of PLI scheme for Specialty Steel, termed as PLI Scheme 1.1.
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.

Q1: What is Sponge Iron?
It is produced from the direct reduction of iron ore (in the form of lumps, pellets, or fines) by a reducing gas produced from natural gas or coal.
Source: PIB