The government is likely to announce a modified Production Linked Incentive Scheme (PLI scheme) for speciality steel. ET Now has learnt from sources that an empowered group of secretaries will be meeting soon to approve the modified PLI scheme. Even after extending the date of application twice only 10 applications have come under the scheme so far. Due to tepid response, the steel ministry has made many changes in the actual format of the scheme after consultation with big steel companies.

In a modified version of the scheme, the steel ministry has proposed to extend the ambit of PLI to some other sectors, sources aware of the matter have said. Sectors like Textile and Defence, meeting maximum demand through imported speciality steel, have also been included in the list. It is also mulling to provide uniform incentives to the companies for all kinds of manufacturing.

Sources have also informed that the secretary panel under chairmanship cabinet secretary may give final approval by the end of this week. The Secretary panel may also evaluate the size of the scheme to accommodate maximum demand. Government has allotted Rs 6,322 crore for the original version of the scheme.

With the new changes, the last date to submit an application under the scheme may also be extended to another 20 days, said the sources. Steel ministry has received 58 registrations so far and Companies like JSW, Tata steel, Vedanta, SAlL are in the list which have made registration. The Steel ministry hopes to receive greater response this time from the companies on a modified version of the PLI scheme.