New Delhi: To boost the production of specialty steel in India, a Rs. 6,322 crore Production Linked Incentive (PLI) Scheme got a nod in approval during the Union Cabinet, chaired by the Prime Minister of India, Narendra Modi. The duration of the scheme will be till the next five years from 2023-24 to 2027-28 and is expected to bring in investment of approximately ₹40,000 crores and capacity addition of 25 MT for specialty steel.
This scheme shall also employ about 5,25,000 people of which 68,000 will be direct employment.
Specialty steel has been chosen as the target segment since only 18 million tonnes of value-added steel/specialty steel were produced in the country. And besides this, approx. 4 million tonnes import was of specialty steel alone resulting in FOREX outgo of Approx. Rs. 30,000 crores.
India shall boost up the steel value chain and compete with the advanced steel-making countries like Kore and Japan.
It is expected that the specialty steel production will become 42 million tonnes by the end of 2026-27, ensuring 2.5 lakh crores approx. worth of specialty steel to be produced and consumed in the country. Similarly, the export of specialty steel will become around 5.5 million tonnes as against the current 1.7 million tonnes of specialty steel getting FOREX of Rs 33,000 crore.
To convert specialty steel into high-value-added steel which can be used in various strategic applications like Defence, Space, Power, apart from the automobile sector, specialized capital goods, etc.
The five categories of specialty steel that have been chosen in the PLI Scheme are:
- Coated/Plated Steel Products
- High Strength/Wear-resistant Steel
- Specialty Rails
- Alloy Steel Products and Steel wires
- Electrical Steel
After completion, these categories of the Scheme India will start manufacturing products like API grade pipes, Head Hardened Rails, electrical steel (needed in transformers and electrical appliances) which are currently manufactured in very limited quantity or not manufactured at all.
There are 3 slabs of PLI incentives, the lowest being 4 % and the highest being 12% which has been provided for electrical steel (CRGO). The PLI Scheme for specialty Scheme will ensure that the basic steel used is ‘melted and poured’ within the country which means that raw material (finished steel) used for making specialty steel will be made in India only, thereby ensuring that the Scheme promotes an end to end manufacturing within the country.
During the cabinet meeting, chaired by Narendra Modi, PM of India, the PLI decision was taken along with the Information and Broadcasting Minister Anurag Thakur.