Performance Linked Incentive Scheme to Promote Special Steel

Performance Linked Incentive Scheme to Promote Special Steel

Indian government has approved a Production Linked Incentive scheme for 10 sectors including steel, aimed to enhance domestic manufacturing capacities

and enhancing export capabilities. Steel is a strategically important industry and India is the world's second largest steel producer in the world. It is a net exporter of finished steel and has the potential to become a champion in certain grades of steel. INR 6,322 crore PLI scheme in special steel will help in enhancing manufacturing capabilities for value added steel leading to increase in total exports.

Steel Sector Product Lines

Coated Steel

High Strength Steel

Steel Rails

Ally Steel Bars & Rods

As per media reports, apart from attracting foreign investments and technology for manufacture of special steels in India through the incentive scheme, the scheme will also be sharply focused on facilitating growth of local manufacture of the highly import dependant cold rolled grain oriented grade steel used by the electrical sector. Of the total incentives of USD 855 million earmarked for the steel sector over a five-year period, as much as USD 77 million is aimed to be offered to steel producers expanding or diversifying into production of CRGO grade steel

The Indian steel industry has welcomed inclusion of specialty steel in the list of sectors that can avail of the production linked incentive scheme.

Incentive Cost to Government over 5 Years (in INR crore)

Sectors Implementer Outlay

Automobiles and Auto Components Department of Heavy Industries 57,042

Advance Chemistry Cell Battery NITI Aayog and Department of Heavy Industries 18,100

Pharmaceuticals drugs Department of Pharmaceuticals 15,000

Telecom and Networking Products Department of Telecom 12,195

Food Products Ministry of Food Processing Industries 10,900

Textile Products Ministry of Textiles 10,683

Speciality Steel Ministry of Steel 6,322

White Goods (ACs and LED) Department for Promotion of Industry and Internal Trade 6,238

Electronic/Technology Products Ministry of Electronics and Information Technology 5,000

High Efficiency Solar PV Modules Ministry of New and Renewable Energy 4,500

Total 145,980

The above will be in addition to the already notified PLI schemes in the following sectors

Sectors Implementer Outlay

Mobile Manufacturing and Specified Electronic Components MEITY 40951

Critical Starting Materials, Drug Intermediaries and API Department of Pharmaceuticals 6940

Manufacturing of Medical Devices Department of Pharmaceuticals 3420

Total 51311

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