The Union Cabinet has approved the PLI Scheme for Specialty Steel on July 22, 2021.
The key takeaways are as follows:
- Duration of the scheme would be 5 years commencing from FY 2023-2024 to FY 2027-2028.
- Products are covered under 5 categories — Coated/Plated Steel Products, High Strength/Wear resistant Steel, Specialty Rails, Alloy Steel Products and Steel wires and Electrical Steel.
- Incentive to be in range of 4% to 12% on incremental production.
- Mandatory condition: – Steel used for manufacturing ‘specialty steel’ must be ‘melted and poured’ in India, i.e. raw material (finished steel) used for making specialty steel will be made in India only, hence promoting end to end manufacturing within the country.
- Government expects additional investment of INR 40,000 crore and increase in productivity capacity by 25 MT.
- The scheme is expected to generate employment opportunities to about 5,25,000 people of which 68,000 will be direct employment.
Source: Press Information Bureau.
*Tanvi Singh, Editorial Assistant has reported this brief.
