PLI Scheme for Specialty Steel:

Union Cabinet approves Production-linked Incentive (PLI) Scheme for Specialty Steel.

Highlights and significance of the scheme:

• The duration of the scheme is from 2023-24 to 2027-28 (five years).
• It aims to boost the production of high-grade specialty steel in the country.
• There are 3 slabs of PLI incentives under the scheme. The lowest being 4% and the highest is 12%, which has been provided for electrical steel (CRGO).
• It has a budgetary outlay of ₹6322 crores.
• It is expected to bring in investment of approximately ₹40,000 crores and capacity addition of 25 MT for speciality steel.
• The scheme is expected to give employment to about 5,25,000 people of which 68,000 will be direct employment.

 

Coverage:

The five categories of specialty steel that 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, and Electrical Steel.

 

What is Specialty Steel?

Specialty steel is value-added steel wherein normal finished steel is worked upon by way of coating, plating, heat treatment, etc. to convert it into high-value-added steel.

• This steel can be used in various strategic applications like Defense, Space, Power, apart from the automobile sector, specialized capital goods among others.

 

Why was Speciality Steel chosen for the PLI Scheme?

• It is because out of the production of 102 million tonnes of steel in India in 2020-21, only 18 million tonnes of value-added steel/specialty steel was produced in the country.
• Apart from this, out of 6.7 million tonnes of imports in 2020-21, about 4 million tonnes import was of specialty steel alone resulting in Forex expenditure of Rs.30,000 crores.

Hence, by becoming Atma Nirbhar in producing speciality steel, India will move up the steel value chain and come at par with advanced steel-making countries like Korea and Japan.