Daily Current Affairs : 7-January-2025

The Union Minister of Steel and Heavy Industries recently launched the Production Linked Incentive (PLI) Scheme 1.1, aimed at boosting India’s self-reliance in steel production. This initiative is part of the government’s Atmanirbhar Bharat mission, which seeks to make India more self-sufficient and reduce its reliance on imports. The scheme primarily targets enhancing the domestic production of specialty steel.

What is PLI Scheme 1.1?

The PLI Scheme 1.1 is designed to increase India’s production of specialty steel, which is essential for various industries like automotive, construction, and manufacturing. The scheme focuses on five key categories of specialty steel, with an aim to make India a global leader in steel manufacturing.

Key Product Categories:
  • Coated/Plated Steel
  • High Strength/Wear Resistant Steel
  • Specialty Rails
  • Alloy Steel Products & Steel Wires
  • Electrical Steel
Objectives of the Scheme

The main goals of the PLI Scheme 1.1 are:

  • Reducing Import Dependency: By increasing domestic steel production, the scheme aims to reduce the country’s dependency on importing specialty steel.
  • Promoting High-Value Steel Manufacturing: It encourages the production of high-value, specialized steel products that are in demand globally.
  • Strengthening India’s Global Position: By improving domestic production, India aims to enhance its position as a major player in the global steel industry.
Key Features of the Scheme
  • Investment and Production Thresholds:
    • The investment threshold for Cold-Rolled Grain-Oriented (CRGO) steel has been reduced to ₹3,000 crore.
    • The production threshold for eligibility has been set at 50,000 tonnes, making it more accessible for companies to participate.
  • Carry Forward of Surplus Production: Companies are allowed to carry forward any excess production to the next year to remain eligible for incentives, providing greater flexibility.
  • Focus on Existing Capacities: The scheme now includes investments aimed at upgrading and augmenting existing manufacturing facilities. This ensures that companies can improve their current operations without needing to build new facilities.
Incentive Period

The incentives under PLI Scheme 1.1 will be available from the fiscal year 2025-26 to 2029-30. This five-year period provides ample time for companies to enhance their production and benefit from the scheme.

Important Points:
  • PLI Scheme 1.1 launched by the Union Ministry of Steel and Heavy Industries.
  • Focuses on increasing domestic production of specialty steel in five key categories.
  • Five key product categories: Coated/Plated Steel, High Strength/Wear Resistant Steel, Specialty Rails, Alloy Steel Products & Steel Wires, Electrical Steel.
  • Main objectives:
    • Reduce import dependency.
    • Promote high-value steel manufacturing.
    • Strengthen India’s global position in steel production.
  • Investment and production thresholds:
    • Investment threshold for CRGO steel reduced to ₹3,000 crore.
    • Production threshold set at 50,000 tonnes.
  • Carry forward excess production: Companies can carry surplus production to the next year for incentive eligibility.
  • Eligibility for existing capacities: Investments to augment current facilities are eligible for the scheme.
  • Incentive period: From FY 2025-26 to FY 2029-30.
Why In News

The Union Minister of Steel and Heavy Industries launched PLI Scheme 1.1 to enhance India’s self-reliance in steel production under Atmanirbhar Bharat, aiming to reduce import dependency and position India as a global leader in specialty steel manufacturing.

MCQs about PLI Scheme 1.1
  1. What is the primary goal of the PLI Scheme 1.1 launched by the Union Ministry of Steel and Heavy Industries?
    A. To increase steel imports
    B. To reduce India’s dependency on coal
    C. To enhance India’s self-reliance in steel production
    D. To promote the export of iron ore
    Correct Answer: C. To enhance India’s self-reliance in steel production
    Explanation: The PLI Scheme 1.1 aims to reduce India’s dependency on imports by boosting domestic production of specialty steel, as part of the Atmanirbhar Bharat initiative.
  2. Which of the following is NOT one of the key categories under the PLI Scheme 1.1?
    A. Coated/Plated Steel
    B. High Strength/Wear Resistant Steel
    C. Renewable Steel
    D. Electrical Steel
    Correct Answer: C. Renewable Steel
    Explanation: The five key categories under the scheme are Coated/Plated Steel, High Strength/Wear Resistant Steel, Specialty Rails, Alloy Steel Products & Steel Wires, and Electrical Steel. “Renewable Steel” is not part of these categories.
  3. What is the incentive period for the PLI Scheme 1.1?
    A. FY 2024-2027
    B. FY 2025-2026 to FY 2029-2030
    C. FY 2023-2026
    D. FY 2025-2029
    Correct Answer: B. FY 2025-2026 to FY 2029-2030
    Explanation: The incentive period for the PLI Scheme 1.1 spans from FY 2025-26 to FY 2029-30, providing a five-year window for eligible companies to benefit from the scheme.
  4. Under the PLI Scheme 1.1, what flexibility is given to companies regarding surplus production?
    A. Surplus production cannot be carried forward to the next year
    B. Companies can carry forward excess production for incentive eligibility
    C. Surplus production is penalized
    D. Companies must reduce surplus production by 50%
    Correct Answer: B. Companies can carry forward excess production for incentive eligibility
    Explanation: The PLI Scheme 1.1 allows companies to carry forward any surplus production to the next year, ensuring they remain eligible for incentives.

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