Cabinet approves Rs 6322 crore PLI scheme for specialty steel

An Rs 6,322-crore production linked incentive (PLI) scheme for specialty steel has been approved by the Union Cabinet. This move is aimed at boosting the domestic exports and manufacturing from this sector.

Key Points

• Incentives worth Rs 6,322 crore will be provided for over five years and this scheme will create over 5,25,000 jobs.
• It will boost manufacturing and help in reducing imports
• This PLI scheme will cover wear resistant/high strength steel; plated/coated steel products; steel wires and electrical steel and alloy steel products; specialty rails.
• Production of high grade specialty steel in the country will be boosted by this scheme.
• Enhanced exports with minimising dependence on the imports of high-end steel will be enforced through this scheme.
• Investment of approximately Rs 40,000 crore with a capacity addition of 25 MT will be brought in through this scheme.
• The scheme also proposes to incentivise all the eligible manufacturers in the country by paying in the range of 4% to 12% incentive on the incremental production. The incentive will help in developing the Indian steel industry.
• Any Indian registered company who are engaged in manufacturing of specialty steel grades will be eligible to participate in the PLI scheme.

Duration of the scheme

Commencing from 2023-24 for a duration of 5 years till the year 2027- 28.

Also, this scheme has a huge potential for employment generation. Around 5,25,000 employment will be generated in the country of which 68,000 will be direct employment while the rest will be indirect employment.

Month: Current Affairs - July, 2021