Parliament Parliamentary Committee
PLI Scheme for Specialty Steel: actual investment Rs 22,973 crore, 52% of committed Rs 44,106 crore
The Standing Committee on Coal, Mines, and Steel examined the status of India's steel sector and the progress of schemes aimed at expanding domestic production to achieve self-reliance (Aatmanirbharta).
Who it concerns: Ministry of Steel; the steel industry including primary and secondary producers, MSMEs, and exporters; and the general public affected by steel prices and industrial development.
What the committee found
- PLI Scheme for Specialty Steel: The Committee noted that actual investment stood at Rs 22,973 crore (52% of the Rs 44,106 crore commitment) and production reached only 16% of the target as of October 2025. It recommended strengthening support for R&D and technology transfer.
- Coking Coal Imports: With import dependence at 85-90% and 54% from Australia, the Committee recommended diversifying import sources. It noted that coal blending remains at around 10%, despite a target of 30% by 2030.
- Iron Ore: The Committee noted that only 23% of hematite reserves are high-grade and recommended accelerating beneficiation and pelletisation capacity to utilize low-grade ore fines.
- Export Competitiveness: The Committee flagged high logistics costs, non-tariff barriers, and the EU's Carbon Border Adjustment Mechanism (CBAM) as challenges, particularly for MSMEs. It recommended exploring a diversification strategy for export markets.
- Logistics Costs: The Committee noted Indian producers incur logistics costs of 16-18% of revenue compared to a global benchmark of 10-12%. It recommended time-bound implementation of freight corridors, upgradation of 1,000 km of road connectivity, expansion of slurry pipelines, and development of waterways by 2028-29.
- Decarbonisation: The Committee recommended a phased, cost-sensitive decarbonisation roadmap and continued technology support for secondary steel producers, who account for 47% of national capacity.
Also in the document
- Actual investment under the PLI Scheme for Specialty Steel was Rs 22,973 crore, which is 52% of the committed Rs 44,106 crore.
- Cumulative specialty steel production reached only 16% of the 14.3 million tonne target.
- India's import dependence for coking coal is 85-90%, with 54% of imports sourced from Australia.
- Coal blending for coking coal stands at around 10%, significantly below the 30% target set for 2030.
- Logistics costs for Indian steel producers are 16-18% of revenue, exceeding the global benchmark of 10-12%.
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The original document
Parliamentary Standing Committee reports (via PRS Legislative Research)
Committee report · Ref. aatmanirbharta-in-steel-sector-and-roadmap-for-made-in-india-steel-production
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