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The Ministry of Steel has said that about Rs 12,900 crore has already been invested in the domestic steel sector under the Production Linked Incentive (PLI) scheme for specialty steel. In March 2023, 57 memorandum of understandings (MoUs) were signed for generating an investment of about Rs 29,500 crore in the sector by FY28.

Further, it stated the scheme envisaged addition of 25 MT capacity for producing specialty steel grades and generating about 17,000 employment opportunities. It said as many as 5 units set up as part of the PLI scheme have begun production, and 9 more units are expected to begin production in this quarter.

On the status of the scheme, the ministry said ‘as of December 2023, the selected companies have already invested about Rs 12,900 crore against an investment commitment of Rs 21,000 crore up to the current financial year.’ It is expected that another Rs 3,000 crore will be invested by these companies during FY24.

The ministry envisages an investment of Rs 10,000 crore in FY25. Besides, it said that investments in the steel sector have a long gestation period and depend on factors like procurement of various equipment, many of which are sourced from abroad.