The application window for financial incentives under the PLI Scheme for Specialty Steel was closed in September 2022 and the government received 79 applications from 35 companies, out of which MoU were signed with 27 selected companies covering 57 applications, said Union Minister Faggan Singh Kulaste.
The production-linked incentive (PLI) scheme for specialty steel was approved by the government on July 22, 2021, with a financial outlay of Rs 6,322 crore. India has emerged as world’s second-largest crude steel producer since 2018 and second largest consumer of finished steel since 2019.
“Application window was closed on 15.09.2022. Government received 79 applications from 35 companies out of which Memorandum of Understanding (MoU) were signed with 27 selected companies covering 57 applications. Companies participating in the PLI scheme have committed to an investment of ₹ 29,530 crores, downstream capacity addition of 24.78 million tonne and employment to about 55,000,” Union Minister of State for Steel and Rural Development Faggan Singh Kulaste said in a written reply to a query in the Rajya Sabha.
The objective of the PLI Scheme is to promote domestic manufacturing of ‘Specialty Steel’ within the country by attracting capital investment, generate employment and promote technology up-gradation in the steel sector.
Salient features of the scheme include – 3 slabs of incentives, participation only by companies registered in India, commitment to thresholds of investment and incremental production given in the scheme guidelines.
Specialty steel is a value-added steel wherein normal finished steel is worked upon by way of coating, plating, heat treatment and so on, useful in applications requiring specific properties such as defence, space, power, automobile, specialised capital goods etc. Additional production of specialty steel is required for the domestic steel sector to move up the global value chain.
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