PRODUCTION-LINKED INCENTIVE (PLI) SCHEME FOR SPECIALTY STEEL

July 23, 2021

Union Cabinet approved the 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.

Source : LiveMint