Government News
Steel PLI 2.0 put on hold at the moment, 5 cos start rolling out products under existing PLI scheme
By - 22 Feb 2024 08:20 PM
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The PLI 2.0 scheme for speciality steel has currently been put on hold, and proposals relating to it could be explored only after a review of the performance of the first phase, which is currently ongoing, senior officials of the Union Steel Ministry told businessline. The review will be carried out of the proposals that take place under PLI 1.0, including the time taken to roll out of products (under it) and the financial outgo, apart from market demand for new products, before any announcement on PLI 2.0 is made. Proposals could come under a new policy head too. PLI 2.0, which was targeting a disbursal of ₹4,300 – ₹4,500 crore, would cover segments like coated & plated steel, high strength and wear-resistant offerings, speciality rails, alloys including wires and tubes, electrical steel, among others. We do envisage that there will be interest in specialised steel making. But since these projects have long gestation period, and are high capex, a call has to be taken considering the change in market conditions in future. Right now, the focus would be on putting in place PLI 1.0 and ensure its roll out,” the official said adding: “So PLI 2.0 is on-hold at the moment.” In the case of PLI 1.0, MoUs have not been received in respect of 13 approved applications, and the official said that despite attempts these applicants have not been on-boarded for the ongoing scheme. Out of the 67 approved applications, 54 MoUs were inked. Drop-outs happened for various reasons that include changing demand patterns, high capex, environment clearances, and land litigation, because of absence of expertise in the segment, or also because clearances were granted in parts and not as a whole. Apart from India, steel demand, including that of specialised steel offerings, continues to remain depressed across key markets in Europe. There has been a drag–down effect by excess stocks in a slow-moving Chinese economy. |
