India Finalizes Production Linked Incentive for Special Steels
CNBC TV18 reported that India’s steel ministry has finalised a plan for specialty steel manufacturing under the Production Linked Incentive scheme. The
CNBC TV18 reported that India’s steel ministry has finalised a plan for specialty steel manufacturing under the Production Linked Incentive scheme. The ministry has proposed a three incentive slab of 3%, 6% and 9%. The PLI per company will be subject to a ceiling of INR 200 crore and the outlay for specialty steel is marked INR 6,322 crore for the five year period.
The highest rate of a 9% incentive will be made available for commencing production of steel products that are entirely being imported into the country, like pipes and tubes for the oil and gas industry and head-hardened steel rails.
The second incentive level of 6% will be offered for achieving incremental domestic production of electro-galvanized steel and tin-coated steel products and with the potential of achieving export capabilities within the period of the next five years.
The third level of incentive of three percent will be available for incremental production of aluminium-zinc coated steel and heat-treated hot rolled coils.
Producers of rebars, stainless steel and alloy steel products have also approached the government to be made eligible for the PLI, but the ministry is yet to take a decision on creating incentive levels for this segment.
Indian government has approved INR 1.45 lakh crore plans 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.