About Rs 12,900 crore has already been invested in the domestic steel sector under the PLI scheme for specialty steel, an official statement said on Wednesday. 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.
Besides, the scheme envisaged addition of 25 MT capacity for producing specialty steel grades and generating about 17,000 employment opportunities, Ministry of Steel said in an statement.
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.
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, it said.
The ministry envisages an investment of Rs 10,000 crore in FY25.
It further 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.
Delays due to unavoidable circumstances in the projects include supply chain delays due to geopolitical issues, unforeseen events, natural disasters and changed market, among others.
The ministry along with other relevant government departments, has been proactively engaging with the PLI beneficiaries to resolve issues faced by companies and facilitate them to meet their commitments.
Measures have been taken to expedite clearances for projects, issue standard operating procedures for Indian visa for experts, and to address the concerns of the participating companies by continuous engagement with stakeholders.
(This report has been published as part of an auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)