New Delhi [India], July 22 (ANI): The Union Cabinet on Thursday approved Rs Rs 6,322-crore Production-linked Incentive (PLI) Scheme for specialty steel, an initiative aimed at boosting domestic manufacturing and exports and cutting down the import burden for the sector, Information and Broadcasting Minister Anurag Thakur said.
Speaking at a press briefing, Union Minister Anurag Thakur said, "The step has been taken to increase the manufacturing of specialty steel in the country and it will cut down the import burden."
He said that incentives worth Rs 6,322 crore will be provided over five years and it would create over 525,000 jobs.
"The scheme will cover coated/plated steel products, high strength/wear-resistant steel, specialty rails, alloy steel products, steel wires, and electrical steel. Any company registered in India, engaged in manufacturing of the identified 'specialty steel' grades eligible to participate," Thakur said.
Highlighting the benefits of the scheme, the Union Minister pointed out that Rs 39,625 crore investment is expected in specialty steel manufacturing and will generate potential employment of about 5.25 lakh in the sector.
Moreover, a cap of Rs 200 crore per company will be imposed under the PLI scheme.
The scheme is expected to bring in investment of approximately 40,000 crores and capacity addition of 25 MT. The duration of the scheme will be five years, commencing from 2023-24 to 2027- 28.
The PLI scheme would cover coated/Plated steel products; High strength/wear-resistant steel; Specialty rails; Alloy steel products, Steel wires and Electrical steel. These steel products are used in a variety of applications which are both strategic and non-strategic and include white goods, automobile body parts and components, pipes for the transportation of oil and gas, boilers, ballistic and armour sheets meant for defence application, high-speed railway lines, turbine components, electrical steel meant for power transformers and electric vehicles.
India presently operates at the lower end of the value chain in steel sector. Value-added steel grades are largely imported in India. This is because of the disabilities faced by the steel industry to the tune of USD80-100 per ton, on account of higher logistics and infra cost, higher power and capital cost and, taxes and duties.
"The objective of the PLI scheme for specialty grade steel is to address this disability by incentivising production of specialty steel within the country. The scheme proposes to incentivise eligible manufacturers by paying between 4 per cent to 12 per cent incentive on incremental production. PLI incentive will also help the Indian steel industry mature in terms of technology and move up the value chain," the government.said
Any company registered in India, engaged in manufacturing of the identified "specialty steel" grades will be eligible to participate in the scheme. It will, however, have to ensure that the steel used for making "specialty steel" is "melted and poured" in the country, thereby ensuring end-to-end manufacturing keeping in view the Prime Minister's, Atmanirbhar Bharat'.
PLI scheme for specialty steel is expected to play the important role in strengthening domestic steel value chain and will incentivize the steel sector to invest in technological capability building to contribute to global steel value chain by producing value-added steel. Considering the additional production and investment, the scheme has an employment generation potential of about 5.25 lakh of which 68,000 will be direct and the rest will be indirect employment. (ANI)