Government notifies PLI scheme guidelines for specialty steel
The government notified guidelines for the recently announced Production Linked Incentive (PLI) scheme for specialty steel.
On July 22, 2021, the Union Cabinet chaired by Prime Minister Mr. Narendra Modi had approved the Rs. 6,322 crore (US$ 843.8 milllion) PLI scheme to enhance production of specialty steel in India, attract further investment of about Rs. 40,000 crore (US$ 5.3 billion) and generate new 5.25 lakh job opportunities.
In a statement, the Ministry of Steel stated that “guidelines for an effective operation and smooth implementation of PLI Scheme have been notified on October 20, 2021 on the website of the ministry. Guidelines offer clarity on operational aspects of the scheme such as the application, eligibility, disbursement of incentive and so on”.
The five categories of specialty steel which have been integrated in the PLI scheme are coated/plated steel products, high strength/wear resistant steel, specialty rails, alloy steel products, steel wires and electrical steel, the ministry added.
According to the guidelines presented on the website of the steel ministry, a company considering to avail the benefits of the scheme should be registered in India under the Companies Act. Joint Venture companies can also apply for incentives under the PLI scheme.
A transparent selection process will be followed to choose the qualified company. Preference shall be given to eligible companies “committing to front load their investment during the scheme period...,” it added further.
As per the ministry statement, it is expected that the specialty steel production in India will become 42 million tonnes by the end of 2026-27. This will ensure that ~ 2.5 lakh crore worth of specialty steel will be produced and consumed in the country which would or else have been imported.
Similarly, the export of specialty steel will become ~ 5.5 million tonnes as against the current 1.7 million tonnes.
Specialty steel is a value added steel in which normal finished steel is worked upon by way of coating, plating, heat treatment, etc to change it into high value added steel which can be used in numerous strategic applications like defence, space, power, apart from automobile sector, specialised capital goods, etc.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.