The Ministry of Steel on 20th October 2021 has notified the guidelines for production linked incentive scheme for specialty steel in india. The Objective of the PIL scheme for specialty steel is to promote manufacturing of such steel grades within the country and help the Indian steel industry mature in terms of technology as well as move up the value chain.
The Guidelines offer clarity on operational aspects of the Scheme such as the application, eligibility, disbursement of incentive and so on.
The benefit of this scheme will accrue to both big players’ i.e. integrated steel plants and to the smaller players (secondary steel players)
Specialty steel is value added steel wherein normal finished steel is worked upon by way of coating, plating, heat treatment, etc. to convert it into high value added steel which can be used in various strategic applications like Defence, Space, Power, apart from automobile sector, specialized capital goods etc.
The five categories of specialty steel that 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 Steel
Further, the incentives under the PLI scheme shall only be provided to companies registered under the companies Act 2013 which qualifies through the application process given in the guidelines and achieves committed incremental production for each product sub-category.