Recently, the Union Cabinet approved the Production-Linked Incentive (PLI) scheme (Central Sector Scheme) for manufacturing Speciality Steel (SS) with a budgetary outlay of Rs 6,322 crore over a period of five years from 2023-24.
- It is value-added steel, which is made by processing normal finished steel.
- It is done by converting normal finished steel into high value-added steel by way of coating, plating and heat treatment.
- Apart from the automobile sector and specialised capital goods, they can be used in various strategic applications such as defence, space, power etc.
- SS are categorized in various types such as, coated/plated steel products, high strength/wear resistant steel, speciality rails, alloy steel products and steel wires, electrical steel etc.
- In order to boost domestic manufacturing and cut down on import bills, the central government in March 2020 introduced a PLI scheme that aims to give companies incentives on incremental sales from products manufactured in domestic units.
- The scheme invites foreign companies to set units in India, however, it also aims to encourage local companies to set up or expand existing manufacturing units.
- The Scheme has also been approved for sectors such as automobiles, pharmaceuticals, IT hardware including laptops, mobile phones & telecom equipment, white goods, chemical cells, food processing and textiles, etc.
- It will ensure finished steel be made in India only, thereby ensuring that the scheme promotes end-to-end manufacturing within the country.
- It will help create global manufacturing champions in India and bring the country on a par with global steel making majors such as South Korea and Japan.
- It will generate employment for about 5 lakh people, including direct employment for 68,000 people.
- It is expected to bring investments worth about Rs 40,000 crore and result in a capacity addition of 25 million tonnes (MT) for speciality steel.
- The export of SS would become about 5.5 MT against the current 1.7 MT earning a Forex of Rs 33,000 crore.
SOURCE: THE HINDU,THE ECONOMIC TIMES,MNT