- India emerged as world’s second largest crude steel producer since 2018 and second largest consumer of finished steel since 2019.
- A Production Linked Incentive (PLI) Scheme for Specialty Steel was approved by the Government on 22.07.2021, with a financial outlay of ₹ 6,322 crores.
- The PLI scheme aims to extend an incentive of 4% to 6% on incremental sales (over base year) of goods manufactured in India and covered under target segments, to eligible companies, for a period of five years.
- Objective of the PLI Scheme is to promote domestic manufacturing of ‘Specialty Steel’ within the country.
- In 2020-21, India imported 6.7 MT of steel, out of which 4 MT was specialty steel. Through the PLI scheme, India wants to plug this gap in market demand by sourcing domestically and creating products for export.
What is Specialty steel?
- Specialty steels (also referred to as alloy steel) contain additional alloyed materials that deliver special properties to the final product.
- Specialty steels are engineered to provide superior performance under specific conditions.
- Specialty steel is a value-added steel, made by processing normal finished steel through coating, plating and heat treatment.
- Apart from its applications in the automobile sector and specialized capital goods sector, it also holds high usage value in sectors like defense, space, and power.
Benefits of Specialty Steels
- High corrosion resistance
- Targeted resistance to high and/or low temperature
- Easily fabricated
- Dimensional stability and strength
- Sterile and hygienic
- Well suited for special applications
- Lighter weight
- Grease-free use
- Applications of Specialty Steels
- Food and Beverage
Specialty steels are used in bearings for food processing equipment because they can be easily cleaned and offer high corrosion resistance while maintaining durability at high and low temperatures.
- It is used in chemical processing due to its ability to resist acids.
- This specialty steel can be used in acidic or alkaline environments.
Due to the high corrosion resistance, superior stability, high strength, and resistance at high and low temperatures, specialty steels are well suited for bearings used in many types of severe environments.
SOURCE: THE HINDU, THE ECONOMIC TIMES, PIB