**Executive Summary**
This document provides answers to Unstarred Question No. 1773 in Lok Sabha, addressing initiatives to upskill workers, automation in the steel industry, and incentives under the Production Linked Incentive (PLI) Scheme for Specialty Steel. The answers were provided by the Minister of State in the Ministry of Steel on February 10, 2026. The report details efforts to improve productivity and efficiency in the steel industry.
**Key Points / Main Content**
* **Upskilling Initiatives**
* The steel industry focuses on skill development and worker training to improve labor productivity.
* Initiatives include in-house technical and multi-skill training, advanced maintenance and automation learning, and collaboration with technology partners and academic institutions.
* Digital learning, skill recognition for contract workers, and leadership training are implemented to enhance productivity and efficiency.
* **Automation and Digital Technologies**
* The steel industry uses automation and digital technologies in shop floors by adopting AI and machine learning models.
* Tools like digital twins and predictive maintenance optimize factory operations and reduce equipment breakdowns.
* Digital solutions are making supply chain and office work faster and easier, with efforts focused on AI-based decision tools and better connectivity.
* **Production Linked Incentive (PLI) Scheme**
* Incentive amounts of ₹48 crore (FY 2024-25) and ₹187.73 crore (FY 2025-26) have been disbursed under the PLI Scheme.
* 44 projects from 19 companies were involved in the first round of PLI, and 42 projects from 25 companies in the second round.
**Impact Analysis**
**Steel Industry Workers**
* **Impact:** Increased skill sets, potential for career advancement, and improved job performance due to enhanced training and skill recognition programs.
* **Action Required:** Engage in available training programs and leverage digital learning opportunities to improve skills and productivity.
**Steel Companies**
* **Impact:** Enhanced productivity, efficiency, cost competitiveness, and access to financial incentives through the PLI Scheme.
* **Action Required:** Implement automation and digital technologies, collaborate with technology partners and academic institutions, and ensure participation in the PLI Scheme to avail incentives.
**Ministry of Steel**
* **Impact:** Responsible for overseeing and facilitating the initiatives aimed at upskilling workers, promoting automation, and disbursing incentives under the PLI Scheme to enhance the overall performance of the steel industry.
* **Action Required:** Monitor the progress of upskilling programs, track the adoption of automation and digital technologies, and ensure timely disbursement of incentives to participating companies under the PLI Scheme.
Key Entities Referenced
Production Linked Incentive (PLI) Scheme: Scheme providing incentives to participating companies in the steel industry.
Ministry of Steel: The government ministry responsible for policies related to the steel industry.
GOVERNMENT OF INDIA
MINISTRY OF STEEL
LOK SABHA
UNSTARRED QUESTION NO. 1773
FOR ANSWER ON 10.02.2026
UPSKILLING OF WORKERS IN STEEL INDUSTRY
1773. SHRI PRADYUT BORDOLOI:
Will the Minister of STEEL be pleased to state:
(a) the details regarding the initiatives undertaken towards skill-based training and up-
skilling of workers to increase the labour productivity in the steel industry;
(b) the details regarding the extent of automation achieved in the steel industry and
ongoing and proposed projects towards increased automation for improved capacity
utilisation and efficiency and to address cost competitiveness vis-à-vis global steel
producers; and
(c) the details regarding the incentives given under the ‘PLI Scheme for Specialty
Steel’, the number of beneficiaries along with the incentives availed during the last five
years, year-wise?
ANSWER
THE MINISTER OF STATE IN THE (SHRI BHUPATHIRAJU SRINIVASA VARMA)
MINISTRY OF STEEL
(a) The steel industry is improving labour productivity by focusing on skill
development and workers training. This includes in-house technical and multi-skill
training, as well as learning in advanced maintenance and automation. Companies
are also working with technology partners and academic institutions to build expertise.
Digital learning, skill recognition for contract workers, and leadership training help in
increasing productivity and efficiency.
(b) The steel industry is using automation and digital technologies across select
shop floors through the adoption of artificial intelligence and machine learning models.
Tools like digital twins, and predictive maintenance are helping factories run more
efficiently and reduce equipment breakdowns. Digital solutions are making supply
chain and office work faster and easier. Efforts are focussed on using AI-based
decision tools, and better connectivity to improve performance and cost
competitiveness.
(c) Incentive amounts of ₹48 crore and ₹187.73 crore have been disbursed to the
participating companies under the Production Linked Incentive (PLI) Scheme during
Financial Year 2024–25 and Financial Year 2025–26, respectively. There are 44
projects from 19 companies under first round of PLI and 42 projects from 25
companies under second round of PLI.
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