The Union Cabinet, chaired by the Prime Minister Narendra Modi, today (Jul 22) approved the Production Linked Incentive (PLI) Scheme for specialty steel.
The scheme is aimed at boosting the production of high grade specialty steel in the country. The scheme is also targeted at enhancing exports and minimising dependence on imports for high-end steel.
"India presently operates at the lower end of the value chain in 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 USD 80-100 per ton, on account of higher logistics and infra cost, higher power and capital cost and, taxes and duties," the Union Cabinet said in a statement.
Through this scheme, which will be operational for 5 financial years from 2023-24 to 2027- 28, the government hopes to attract Rs.40,000 crores in new investment and create additional capacity of 25 MT. India's current capacity is 16 MTPA
With a budgetary outlay of Rs 6322 crores, the PLI scheme would cover
Coated/Plated steel products;
High strength/wear resistant steel;
Specialty rails; Alloy steel products,
Steel wires and Electrical steel.
Specialty steels are engineered to provide superior performance under specific conditions. Various stainless steel alloys are included among common specialty steels. Traditionally, specialty steel included the high-grade ones used by automakers or electrical steel that are needed to make transformers and generators.
Speciality steel products are used in a variety of applications which are both strategic and non-strategic and include white goods, automobile body parts and components, pipes for transportation of oil and gas, boilers, ballistic and armour sheets meant for Defence application, high-speed railway lines, turbine components, electrical steel meant for power transformers and electric vehicles.
Many of the Indian companies, including Tata Steel, JSW Steel and AM/NS, already make some these specialised steel products. Also, L&T Special Steels & Heavy Forgings and Kalyani Carpenter Special Steels Ltd, are among other players.