The steel ministry has finalised a plan for specialty steel manufacturing under the Production Linked Incentive (PLI) scheme, according to sources. The ministry has proposed a three incentive slab of 3 percent, 6 percent and 9 percent. The PLI per company will be subject to a ceiling of Rs 200 crore and the outlay for specialty steel is marked Rs 6,322 crore for the five-year period.
The nine percent incentive will be for domestic manufacturing of steel grades that are currently imported. This will include steel grade which is mostly imported for oil and gas and industrial purposes. This category will also include head hardened and asymmetrical rails which are imported by India.
The six percent incentive is proposed for tin mill coated metal products, electro-galvanised steel. This category has the potential to be exported once domestic manufacturing picks up, making it a champion sector for India. The three percent incentive is proposed for colour coated, aluminium-zinc coated steel, heat-treated HR steel which is mostly used in the construction, power, agriculture sectors.
The eligibility criteria for the companies engaged will be for end-to-end manufacturing of specialty steel and 50 percent weightage will be on incremental production and the base year will be FY20. Meanwhile, Stainless steel, alloy steel, and TMT producers are also eyeing a share in the PLI scheme but the Ministry is yet to incorporate their demands.
The Centre had approved a Rs 1.45 lakh crore plan in November under the PLI for 10 sectors for a period of five years to augment domestic manufacturing and enhance export capabilities. The 10 sectors include Pharmaceuticals, Telecom, Automobile, Textile, food processing, solar, white goods, specialty steel amongst others.
(Edited by : Ajay Vaishnav)
First Published: IST