New Delhi, Dec 2 : Production-linked incentive (PLI) scheme for specialty steel has seen investments from participating beneficiary companies worth Rs 23,022 crore (till October), the Parliament was informed on Tuesday.

The scheme, approved by the Union Cabinet in July 2021 with a budget of Rs 6,322 crore, aims to boost specialty steel production through financial incentives, Minister of State for Steel and Heavy Industries, Bhupathiraju Srinivasa Varma, told the Lok Sabha in reply to a question.

The ministry is implementing a pilot project for the use of hydrogen in the steel sector under the National Green Hydrogen Mission launched by the Ministry of New and Renewable Energy.

Under the mission, four pilot projects have been awarded in the steel sector so far. Periodic revision 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, Varma added.

Steel is a deregulated sector, and the government acts as a facilitator by creating a conducive policy environment for the development of the steel sector.

"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," the minister said.

In the first week of November, Union Steel and Heavy Industries Minister H.D. Kumaraswamy launched the third round of the PLI scheme for specialty steel.

The third round (PLI 1.2) aims to attract new investments in emerging and advanced steel products, such as super alloys, CRGO, stainless steel long and flat products, titanium alloys, and coated steels.

This is expected to generate significant employment, expand high-end steel capacity, and position India as a preferred supplier in the global value chain for specialty steels.

The Steel Ministryâ??s PLI scheme has so far attracted a commitment for investment of Rs 43,874 crore, which is expected to create direct employment for 30,760 people and an estimated production of 14.3 million tonnes of specialty steel.

/IANS