The Centre has sought proposals for the production-linked incentive (PLI) scheme in speciality steel, with the last date for submission being March 29.
The PLI scheme for speciality steel was approved in July with the Centre offering Rs 6,322cr incentives under the scheme that is expected to generate Rs 40,000cr investments and create 5.25 lakh jobs. The scheme was notified on October 22.
State-owned SAIL said it would consider availing the benefits under the scheme when it draws up its next round of capex plans
Private player JSPL said it would “definitely register for this scheme”.
Tata Steel said the scheme would provide an added advantage to its future plans.
The scheme proposes to encourage eligible manufacturers by paying between 4 per cent and 12 percent incentive on incremental production.
The five categories of speciality steel that have been included in the PLI scheme are coated/plated products, high strength/wear-resistant steel, speciality rails, alloy steel products, steel wires and electrical steel.
Industries such as automobile, electrical, defence and pipes are the consumers of these grades of steel.
The government aims to save Rs 33,000-crore foreign exchange that goes out of India annually on the import of speciality steel.
The duration of the scheme will be five years commencing from 2023-24 to 2027- 28, an official statement said.
The scheme will lead to enhanced exports and minimise the dependence on the imports for high-end steel.
India presently operates at the lower end of the value chain in the steel sector. Value added steel grades are largely imported in India.
This is because of the disabilities faced by the steel industry to the tune of $80-100 per tonne on account of higher logistics and infra cost, higher power and capital cost and taxes and duties.
Any company registered in India, engaged in manufacturing of the identified “specialty steel” grades will be eligible to participate in the scheme.
It will, however, have to ensure that the steel used for making “specialty steel” is “melted and poured” in the country, thereby ensuring end-to-end manufacturing
Junior steel minister Faggan Singh Kulaste had earlier said he was upbeat on the success of the scheme.