Steel PLI 1 scheme: Steel PLI 1.1 scheme has been launched to make India self-reliant in the field of steel production. Many types of facilities have been provided under this scheme. Why is Steel PLI 1.1 special for the steel industry? On this, Rohan Singh had a special conversation with Steel Secretary Sandeep Poundrik on CNBC-Awaaz. But let us first know what PLI 1.1 scheme is. So let us tell you that a budget of Rs 4,400 crore has been kept for the Steel PLI 1.1 scheme. The minimum investment limit for CRGO projects has been reduced. The minimum investment has been reduced from Rs 5,000 crore to Rs 3,000 crore. The minimum capacity of the plant has been reduced from 2 lakh tonnes to 50,000 tonnes. The last date of application for this is 31 January 2025.
According to an estimate, the country will need 300 million tonnes of steel by 2030. The country has a steel production capacity of 180 million tonnes in 2024. The demand for steel in India is increasing at the rate of 12-13 percent.
Steel Secretary Sandeep Poundrik Said in this conversation that a budget of Rs 4,400 crore has been kept for Steel PLI 1.1. PLI 1.1 has more flexibility for investment. The last date for application under PLI 1.1 is January 31, 2025, which will not be extended. He told that in the previous PLI 1, investment of Rs 24 thousand crores had come. Under the changes made in this new scheme, if the existing steel plants come into specialty steel and expand their capacity, then their investment limit has been reduced to half.
Under the new scheme, if any one plant makes more steel than the prescribed limit in one year, then it will be counted in the next year. This kind of flexibility was not there before. This was also a demand of the industry which has been fulfilled.
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Sandeep Pondrick said that the total fund of PLI is around Rs 6400 crore. Out of which Rs 2000 crore has been used for PLI. Funds worth Rs 4,400 crore are available for PLI 1.1. This will be applicable for production till 2029-30 and incentives till 2030-31.