**Executive Summary**
This document is a response to Unstarred Question No. 405 in Lok Sabha, regarding the PLI (Production Linked Incentive) scheme for Specialty Steel, government support for steel manufacturers, and related measures. It addresses the status of the PLI scheme, the number of steel rolling mills in the Rajahmundry constituency, and efforts to ensure raw material availability and promote green technology. It provides updates up to October 2025.
**Key Points / Main Content**
* **PLI Scheme for Specialty Steel:**
* Approved in July 2021 with a budget of ₹6,322 crore to boost specialty steel production through financial incentives.
* Participating beneficiary companies have invested ₹23,022 crore until October 2025.
* **Government Policy on Steel Sector:**
* Steel is a de-regulated sector.
* The Government facilitates the development of the steel sector by creating a conducive policy environment.
* Decisions related to investment, capacity, employment, etc., are based on techno-commercial analysis.
* **Steel Rolling Mills in Rajahmundry Constituency:**
* In 2024-25, there were 2 steel rolling mills in the East Godavari and 9 in Visakhapatnam respectively.
* **Raw Material Availability and Pricing:**
* The Steel Scrap Recycling Policy, 2019 provides a coordination framework to facilitate and promote the recycling of ferrous scrap.
* Periodic adjustments of basic customs duty are made to ensure the availability of raw materials at competitive prices.
* **Green Technology Adoption:**
* The Ministry of Steel is implementing a pilot project for the use of hydrogen in the steel sector under the National Green Hydrogen Mission.
* Four pilot projects have been awarded so far.
**Impact Analysis**
**Specialty Steel Manufacturers and Beneficiary Companies**
* **Impact:** Benefiting from financial incentives to boost specialty steel production, investment boost.
* **Action Required:** Continue investments aligned with PLI scheme goals, adhere to techno-commercial analysis for decisions.
**Secondary Steel Producers (e.g., TMT Bar Rolling Mills)**
* **Impact:** Benefit from the government's facilitation of the steel sector and efforts to ensure raw material availability at competitive prices.
* **Action Required:** Monitor policy changes and market conditions, leverage scrap recycling policy.
**Steel Sector Units in Rajahmundry Constituency**
* **Impact:** Benefitting from measures to ensure raw material availability at competitive prices.
* **Action Required:** Monitor raw material pricing trends, participate in green technology initiatives.
**Ministry of Steel**
* **Impact:** Overseeing the PLI scheme implementation, facilitating steel sector development, and promoting green technology adoption.
* **Action Required:** Continue implementation of PLI scheme, monitor steel sector developments, and promote the pilot project for use of hydrogen in the steel sector.
Key Entities Referenced
Production Linked Incentive (PLI) Scheme for Specialty Steel: Scheme to boost specialty steel production through financial incentives.
Ministry of Steel: The central ministry responsible for the steel sector policy and implementation.
National Green Hydrogen Mission: Mission for use of hydrogen in steel sector.
Steel Scrap Recycling Policy, 2019: Provides a coordination framework with various Ministries to facilitate and promote recycling of ferrous scrap.
Rajahmundry: Location where the number of steel rolling mills and TMT bar manufacturers are considered, along with raw material availability at competitive prices.
GOVERNMENT OF INDIA
MINISTRY OF STEEL
LOK SABHA
UNSTARRED QUESTION NO. 405
FOR ANSWER ON 02.12.2025
PLI SCHEME AND SUPPORT TO STEEL MANUFACTURERS
405. DR. D. PURANDESWARI:
Will the Minister of STEEL be pleased to state:
(a) the status of the Production Linked Incentive (PLI) scheme for Specialty Steel and
the investment attracted;
(b) the Government policy on supporting secondary steel producers (e.g., TMT bar
rolling mills);
(c) the number of steel rolling mills and TMT bar manufacturers in and around the
Rajahmundry constituency;
(d) the steps being taken to ensure the availability of raw materials (like scrap or billets)
at competitive prices for these units in Rajahmundry; and
(e) the measures taken to support the modernization and adoption of green technology
by these local steel units?
ANSWER
THE MINISTER OF STATE IN THE (SHRI BHUPATHIRAJU SRINIVASA VARMA)
MINISTRY OF STEEL
(a) Production Linked Incentive (PLI) Scheme for Specialty Steel was approved by
the Union Cabinet in July, 2021 with a budget of ₹6,322 crore which aims to boost
specialty steel production through financial incentives. Till October, 2025, the
participating beneficiary companies have invested ₹23,022 crore.
(b)to(d): Steel is a de-regulated sector and the Government acts as a facilitator by
creating a conducive policy environment for the development of the steel sector.
Decisions such as investment, capacity addition, employment, product portfolio etc.
are based on techno-commercial analysis of companies. In the year 2024-25, there
were 2 and 9 steel rolling mills in the East Godavari and Visakhapatnam respectively
in and around the Rajahmundry constituency. The Steel Scrap Recycling Policy, 2019
provides a coordination framework with various Ministries to facilitate and promote
recycling of ferrous scrap generated from various sources.
(e) Ministry of Steel is implementing pilot project for use of hydrogen in steel sector
under National Green Hydrogen Mission launched by Ministry of New and Renewable
Energy. Under the mission, four pilot projects have been awarded in steel sector so
far. Periodic of basic customs duty is made to ensure the availability of raw materials
such as scrap at competitive prices for steel sector units in the country including
Rajahmundry.
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