The Cabinet on 22nd July 2021 has approved the Production Linked Incentive (PLI) Scheme for specialty steel. 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 the automobile sector, specialized capital goods, etc. The cabinet has chosen 5 categories of specialty steel for the PIL scheme.
There are 3 slabs of PLI incentives, the lowest being 4 % and the highest being 12% which has been provided for electrical steel (CRGO). The PLI Scheme for specialty Scheme will ensure that the basic steel used is ‘melted and poured ‘within the country which means that raw material (finished steel) used for making specialty steel will be made in India only, thereby ensuring that the Scheme promotes an end to end manufacturing within the country.
The duration of the scheme will be for five years, from 2023-24 to 2027-28 and it is expected to bring in an investment of approximately ₹40,000 crores and capacity addition of 25 MT for specialty steel.
