- The government is set to introduce a second production-linked industry aimed at bolstering the local capital goods industry.
- The expansion of the PLI scheme for steel industry aims to support the manufacture of capital goods and critical consumables such as refractories, low carbon and low loss of ignition fluxes, rollers, carbon capture units and other imported materials required in steel making.
- The new PLI would be an extension of the current scheme, with a focus on capital assistance to produce special steel grades that are not covered by existing PLI provisions.
- The idea is to make the countries steel sector self-sufficient to meet not only domestic demands but become an important centre to meet the steel needs of the globe.
- While the PLI-1 provided incentives to promote the manufacturing of special steel not being made in the country, the PLI-2 will look to expand the list of special steel while also supporting domestic manufacturing of capital goods and consumables.
The five categories of specialty steel which 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
- Electrical Steelass
SOURCE: THE HINDU, THE ECONOMIC TIMES, PIB