Lok Sabha Question No. 3463 (UNSTARRED), answered on 2024-12-17
Subject: Production Linked incentive Scheme
Ministry: STEEL
Asked by: Shri Ananta Nayak, Shri Khagen Murmu

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA

## UNSTARRED QUESTION NO. 3463 FOR ANSWER ON 17.12.2024

## PRODUCTION LINKED INCENTIVE SCHEME

3463.  SHRI KHAGEN MURMU: SHRI ANANTA NAYAK:

Will the Minister of STEEL be pleased to state:

- (a) whether the Government is aware that there is growing need of steel in the country for construction, automotive and defence industry and if so, the details thereof;
- (b) whether the Government has launched a new Production Linked Incentive Scheme (PLI) in order to encourage and boost the production of steel in the country and if so, the details thereof;
- (c) whether the Government has any proposal to set up a new steel production unit in the State of Odisha during the current financial year and if so, the details thereof;
- (d) the performance of the steel sector in FY25 and whether there has been any growth in comparison to previous years; and
- (e) the impact of steel sector in other sectors such as construction, automotive and defence, the data on production, consumption and rise in domestic demand for steel?

## ANSWER

THE MINISTER OF STATE IN THE                   (SHRI BHUPATHIRAJU SRINIVASA VARMA)

MINISTRY OF STEEL

(a)&(e): Construction and infrastructure, automotive and defence sectors contribute to about 90% India's steel consumption. Details of impact of steel in these sectors are as follows:-

Construction Sector : Steel is integral to the construction of large-scale infrastructure expansion of the government such as highways, bridges, railways, metro systems, and affordable housing programs.

Automotive Sector :  Steel  is  used  in  manufacturing  a  wide  range  of  components, including chassis, body panels, and engine parts. Initiatives such as Make in India have increased the demand for domestically produced steel.

Defence  Sector :  The  need  for  specialized,  high-strength  steel  alloys  has  risen alongside  increasing  defense  investments  to  strengthen  the  country's  military capabilities. Steel is also crucial in India's expanding defense infrastructure, such as military bases and storage facilities.

(b) Production Linked Incentive (PLI) Scheme was notified by the government in July,  2021  to  promote  the  manufacturing  of  specialty  steel  within  the  country  and reduce imports by attracting investments. The anticipated additional investment under the PLI Scheme for Specialty Steel is Rs. 27,106 crores, downstream capacity creation of around 24 million tonnes and a direct employment generation of 14,760.

(c)&(d): Steel is a deregulated sector and the Government acts as a facilitator by creating a conductive policy environment for the development of steel sector across all states in the country, including Odisha. Decisions regarding setting up of a steel plant is taken by industry based on techno-commercial consideration including raw material availability, distance from port, logistics etc. The following table indicates the growth  of  steel  production  and  consumption  during  the  last  five  years  is  given  as follows:

| Year                                              | Crude Steel (in MnT)                              | Finished Steel (in MnT)                           | Finished Steel (in MnT)                           |
|---------------------------------------------------|---------------------------------------------------|---------------------------------------------------|---------------------------------------------------|
| Year                                              | Production                                        | Production                                        | Consumption                                       |
| 109.14                                            | 102.62                                            | 100.17                                            | 2019-20                                           |
| 103.54                                            | 96.20                                             | 94.89                                             | 2020-21                                           |
| 120.29                                            | 113.60                                            | 105.75                                            | 2021-22                                           |
| 127.20                                            | 123.20                                            | 119.89                                            | 2022-23                                           |
| 144.30                                            | 139.15                                            | 136.29                                            | 2023-24                                           |
| Source: Joint Plant Committee, MnT-million tonnes | Source: Joint Plant Committee, MnT-million tonnes | Source: Joint Plant Committee, MnT-million tonnes | Source: Joint Plant Committee, MnT-million tonnes |

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