Cabinet approves Production-linked Incentive (PLI) Scheme for Specialty Steel
Cabinet approves Production-linked Incentive (PLI) Scheme for Specialty Steel
Recently, the Union Cabinet approves Production-linked Incentive (PLI) Scheme for Specialty Steel.
Key points and importance of the scheme:
- The period of ‘Production-linked Incentive (PLI) Scheme for Specialty Steel’ will be of 5 years from the year 2023-24 to the year 2027-28.
- The objective of this scheme is to promote the production of high grade specialty steel in the country.
- Three slabs of PLI incentive have been prescribed under this scheme. The lowest slab is 4 percent and the highest is 12 percent, which will be given for Electrical Steel (Cold Rolled Grain Oriented Steel -CRGO).
- The total budgetary outlay under this scheme is ₹6322 crore.
- The plan is expected to entail an investment of about Rs 40,000 crore, and increase the capacity to 25 million tonnes for special steel.
- The scheme will provide employment to about 5, 25, 000 people, out of which 68,000 will be direct employment.
Coverage:
Following are the 5 categories of Specialty Steel selected under the Production Linked Incentive (PLI) scheme:
- Coated/Plated Steel Products
- High Strength / Wear Resistant Steel
- Specialty Rail
- Alloy Steel Products & Steel Wire
- electrical steel
What is ‘Specialty Steel’?
- ‘Specialty steel’ or ‘specialty steel’ is value-added steel. Normally finished steel is developed through coating, plating, heat treatment etc. to convert it into high-value added steel.
- This steel can be used in various strategic applications like defence, space, power apart from automobile sector, specific capital goods.
Why was ‘Specialty Steel’ chosen for ‘PLI Scheme’?
- In the year 2020-21, out of 102 million tonnes of steel produced, only 18 million tonnes of value-added steel or special steel was produced in the country.
- Further, out of imports of seven million tonnes during the same period, about 4 million tonnes were imported only of special steel, resulting in foreign exchange expenditure of about Rs.30,000 crore.
- By becoming self-reliant in the production of special steel, India will move up the steel value chain and come at par with advanced steel producing countries like Korea and Japan.
Source – The Hindu
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