The government is preparing the second phase of performance-linked incentive (PLI) programme, which will focus on the steel sector, particularly for import substitution. “The steel ministry is likely to come up with PLI-2 which will further take care of the requirements of the Indian Railways and various other segments,” steel secretary Nagendra Nath Sinha informed.
Companies participating in the first phase of the PLI scheme for the sector have committed to an investment of ₹29,530 crore, with a downstream capacity addition of 24.78 million tonnes. The government has earmarked ₹6,322 crore for providing incentives to the steel sector under the PLI plan. Results of the scheme will be visible from 2026, Sinha said.
“The steel ministry is pursuing with the Indian steel sector to take urgent initiatives to meet the domestic requirements of the Indian Railways,” he said, adding that agreements have been signed by Steel Authority of India Ltd (SAIL) for asymmetric and hardened rail for the special grade requirements of the railways.
Despite its critical role in India’s infrastructure creation, the domestic steel sector faces shortage of rail rakes during peak power demand months, as those will be diverted for transporting coal to power plants. Commenting on this, the steel secretary said: “New projects have been launched to address the requirement of freight traffic including the steel sector…More than 2,000 wagons per month are being inducted now to improve the level of wagons availability.”
