PLI Scheme for Specialty Steel
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PLI Scheme for Specialty Steel is a Win-Win for All; Union Steel
Minister
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Parliamentary Consultative Committee Meeting of Ministry of
Steel Meets to Discuss “PLI Scheme for Specialty Steel”
Meeting of the Parliamentary Consultative
Committee of the Ministry of Steel was held on 6 August, 2021 on the subject
“Production-Linked Incentive (PLI) Scheme for Specialty Steel”. The meeting was
chaired by the Minister of Steel Ram Chandra Prasad Singh and Minister of State
Faggan Singh Kulaste,
Members of Parliament and senior officers of the Ministry attended the meeting.
Members of Parliament were briefed about the features of the Production-Linked
Incentive (PLI) Scheme approved by the Union Cabinet on July 22, 2021 and
notified on July 29, 2021.
It was informed that the PLI Scheme was
approved with the objective of enhancing domestic production of value-added
steel by attracting significant investment. The incentive is payable from
2023-24 and will be applicable for five product categories, viz,
Coated/Plated Steel Products, High Strength/Wear Resistant Steel, Specialty
Rails, Alloy Steel Products and Steel Wires, and Electrical Steel. The product
categories were chosen after due consultations. The budgetary outlay for the
scheme is Rs. 6,322 crores.
Companies registered in India engaged in
manufacturing the identified product categories using steel melted and poured
within the country are eligible to participate in the scheme. Selection of
companies will be through a transparent selection process with equal weightages
to both incremental production and investment thresholds.
It was also informed that provisions of
deferment of initial year and preference to front-loaded investment have been
given in the scheme keeping in view longer gestation period of investments in
some product categories in steel sector. The budgetary outlay and PLI incentive
payable during any given year as well as the overall outlay cannot be exceeded.
Accordingly, a cap on PLI payable for every company/JV participating in the scheme
has been prescribed. Through the scheme, the Government anticipates bringing in
additional investment of about Rs.40,000 crores along
with generating an overall employment to about 5.25 lakh. Further, it is
anticipated that the composition of specialty steel in import basket will
reduce to a minimum in the next few years.
Supporting the PLI scheme, Members of
Parliament gave their suggestions regarding the scheme. Minister of Steel Shri
Ram Chandra Prasad Singh thanked MPs for supporting the scheme and providing
their valuable inputs and stated that contributing to Hon’ble Prime Minister’s
vision of Atmanirbhar Bharat, the scheme is a win-win
for all. He further informed that the Ministry is preparing detailed guidelines
through its Project Management Agency.