Lok Sabha Question No. 1636 (UNSTARRED), answered on 2023-12-13
Subject: PLI Scheme for Steel Sector
Ministry: STEEL
Asked by: Sukanta Majumdar

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA UNSTARRED QUESTION NO.  1636 FOR ANSWER ON 13/12/2023

## PLI SCHEME FOR STEEL SECTOR

1636. DR. SUKANTA MAJUMDAR:

Will the Minister of STEEL be pleased to state:

- (a) whether the Government is currently evaluating the performance of the Production Linked Incentive (PLI) 1.0 scheme dedicated to the steel sector and if so, the details thereof;
- (b) whether only  a  third  of  the  proposed  investments,  around  $1.3  billion  out  of  the planned $4 billion, have been actualized so far and if so, the details thereof;
- (c) whether the Government is actively engaging with companies that were selected for the scheme but did not sign the PLI 1.0 contracts and if so, the details thereof;
- (d) whether some companies have backed out due to various challenges, such as high capital  expenditure  requirements,  lack  of  market  viability  for  certain  products  or  gaps  in technical expertise; and
- (e) if  so,  the  details  thereof  along  with  the  corrective  steps  being  taken  by  the Government in this regard so far?

## ANSWER

THE MINISTER OF STATE IN THE                        (SHRI FAGGAN SINGH KULASTE)

MINISTRY OF STEEL

(a)&(b): The  performance  of  the  Production  Linked  Incentive  (PLI)  Scheme  for Specialty Steel is monitored by the Government regularly. The actual investment upto Q2 of FY 2023-24 is ₹ 10,730 Cr [~1.34 billion @ ₹ 80 per $] against total committed investment of ₹ 29,531 Crore [~$3.6 billion @ ₹ 80 for 1 $] spreading over FY 21-22 to FY 25-26. The performance of the PLI Scheme for Specialty Steel as of Q2, i.e., September 2023 for FY 2023-24 is given below:

|   Total Committed Investment under the 'Scheme' (₹ Crore) |   Actual Investment till Q2 2023-24 (₹ Crore) |   Committed Production for FY 2023-24 (000 tonne) | Actula Production till Q2 2023-24 (000 tonne)   |   Budgeted Incentive Outlay (₹ Crore) | Actual Incentive Disbursed (₹ Crore)   |
|-----------------------------------------------------------|-----------------------------------------------|---------------------------------------------------|-------------------------------------------------|---------------------------------------|----------------------------------------|
|                                                     29531 |                                         10730 |                                               935 | Nil                                             |                                  6332 | Nil*                                   |

(c)to(e): The steps taken by the government to address the challenges faced by the PLI applicants are given below:-

- (i) Ministry of Steel (MoS) along with Project Management Agency (PMA) viz. MECON Limited has reached out to applicants for one-on-one discussion to understand the concerns and mitigate the issue.
- (ii)  Grievance  Redressal  Mechanism  has  been  constituted  to  oversee  complaints  / grievances  as  well  as  challenges  and  concerns  arising  out  of  the  PLI  Scheme implementation at any stage of the scheme.
- (iii)  The Project Monitoring Group (PMG) was constituted with the mandate of monitoring large scale infrastructure projects, have been extended to upload issues, such as land acquisition,  environmental  clearances,  forest  clearances  etc.,  being  faced  by  PLI approved companies during the scheme period. Standard Operating Procedure (SoP) to facilitate VISAs for experts has been issued by Ministry of Home Affairs (MHA) and Ministry of External Affairs (MEA).

******