Union Cabinet Decision: The Union Cabinet has approved the Production Linked Incentive (PLI) Scheme for Specialty Steel.
The Union Cabinet chaired by Prime Minister Narendra Modi approved the Production Linked Incentive (PLI) Scheme for Specialty Steel. The duration of this scheme will be of five years from the year 2023-24 to the year 2027-28. With a budget outlay of Rs 6322 crore, the scheme is expected to attract an investment of about Rs 40,000 crore and create a capacity of 25 million tonnes for specialty steel. About 5,25,000 people will get employment from this scheme, out of which 68,000 will be direct employment.
Specialty steel has been selected as the target segment because out of 102 million tonnes of steel produced in the year 2020-21, only 18 million tonnes of value-added steel/special steel was produced in the country. Further, out of 6.7 million tonnes imported in the same year, about 4 million tonnes were imported special steel, resulting in foreign exchange expenditure of about Rs 30,000 crore. By becoming self-reliant in the production of specialty steel, India will move up the steel value chain and come at par with advanced steel manufacturing countries like Korea and Japan.
33 thousand crore foreign exchange will be available
It is expected that by the end of the year 2026-27, the production of specialty steel will be 42 million tonnes. This will ensure that special steel worth about 2.5 lakh crores will be produced and consumed in India which would have been imported. Similarly, otherwise the exports would be around 5.5 million tonnes as against 1.7 million tonnes at present, thereby fetching foreign exchange of Rs 33,000 crore.
The Steel sector will get an impetus with this crucial Cabinet decision. https://t.co/kCBoC6Gi6R
— Narendra Modi (@narendramodi) July 22, 2021
The benefits of this scheme will be available to both the large partners i.e. Integrated Steel Plants and the smaller partners (Second Steel Partners). Specialty steel is value added steel in which normal finished steel is impacted through coating, plating, heattreatment to convert it into high value added steel. Which can be used in various strategic applications like defence, space, energy apart from automobile sector, specialized capital goods etc.
The five categories of special steel that have been selected in the PLY scheme are-
>> Coated/Plated Steel Products
>> High Strength / Wear Resistant Steel
>> Specialty Rail
>> Alloy Steel Products & Steel Wire
>> Electrical steel
After completion of this scheme, India will start manufacturing products like API grade pipes, head hardened rails, electrical steel (essential in transformers and electrical equipment) which are currently manufactured in very limited quantities or are not manufactured at all. Is.
read this also- ESIC Covid Benefits: Good news for lakhs of workers, if death due to corona, mother, wife, son, daughter will all get pension