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The Ministry of Steel has extended the last date of applications under Production Linked Incentive (PLI) scheme for speciality steel up to September 15, 2022.
Back in July 2021, the Union Cabinet cleared Rs 6,300 crore production-linked incentive (PLI) scheme for specialty steel for five years. The scheme covers coated/plated steel products, high strength/wear resistant steel, specialty rails, alloy steel goods, steel wires and electrical steel. The government anticipates nearly Rs 40,000 crore investment and 25 million tonne capacity addition for specialty steel.
Earlier, the last date for manufacturers to apply for the benefits under the PLI scheme for speciality steel was March 29. This was later extended till April 30, and again to May 31, 2022.
This announcement marks government's third attempt at extension of PLI scheme and comes on the heels of government hiking the duty on exports of of few steel intermediaries to 15 per cent.
According to Care Ratings, India was the second-largest producer of steel in the world in FY21, but out of the total 102 million tonnes (mt) of steel production, only 18 mt was value-added/specialty steel.
The objective of PLI scheme for ‘speciality steel’ is to promote manufacturing of specialty steel grades within the country by providing financial incentives. Presently the country operates at the low end of value chain in steel manufacturing.
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