PRODUCTION-LINKED INCENTIVE (PLI) SCHEME FOR SPECIALTY STEEL

About:

• The duration of the scheme will be five years,  from 2023-24 to 2027-28.
  
  
• The five categories of specialty steel which 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
    
    
  
  
  
• There are 3 slabs of PLI incentives, the lowest being 4 % and highest being 12% which has been provided for electrical steel (CRGO).
  
  

Need of the scheme

• With a budgetary outlay of ₹6322 crores, the scheme is expected to bring in investment of approximately ₹40,000 crores and capacity addition of 25 MT for speciality steel.
  
  
• It is expected that the speciality steel production will become 42 million tonnes by the end of 2026-27.
  
  
• Speciality steel has been chosen as the target segment because out of the production of 102 million tonnes steel in India in 2020-21, only18 million tonnes value added steel/speciality steel was produced in the country.