India’s Ministry of Steel vide Corrigendum dated 24th December 2021 has deferred by a year the implementation of the INR 6,322 crore Production Linked Incentive scheme to promote and boost production of speciality steel domestically. Instead of 2022-23, the five-year scheme will now commence from 2023-24 and the release of the incentives under the scheme will now start from 2024-25 instead of 2023-24 proposed in the scheme guideline issued in October.PLI DistributionPLI-A: 2023-24 4%; 2024-25 5%; 2025-26 5%; 2026-27 4%; 2027-28 3%PLI-B: 2023-24 8%; 2024-25 9%; 2025-26 10%; 2026-27 9%; 2027-28 7%PLI-C: 2023-24 12%; 2024-25 15%; 2025-26 15%; 2026-27 13%; 2027-28 11%PLI-A - Galvanneal/GI-Auto-Gr; Coated/Plated products of Metallic/Non-Metallic alloys; Al-Zn coated (Galvalume); Colour Coated; HR Coil, Sheets and Plates API Gr 52<=X<=70; High Tensile Sheets, Coil, Plates, YS>=450Mpa; Asymmetric Rails; Head Hardened rails; Alloy Steel: Bearing SteelPLI-B - Tin mill Products; Auto Gr Steel AHSS (CRCA); Boiler Quality, Pressure Vessels; QT / Abrasion Resistance and Wear Resistance; Alloy Steel: Tool and Die Steel; Alloy Steel: Valve Steel; Automotive power train steel; Precipitation Hardened Stainless Steel; Tyre Bead wire; C Class Zinc Coated Wire; Zinc Aluminium Coated Wire; Tyre Cord (Brass Coated); Oil Tempered Spring Steel WirePLI-C – CRNO; CRGOPLI Outlay2024-25 – INR 775 crore2025-26 - INR 1088 crore2026-27 - INR 1394 crore2027-28 - INR 1377 crore2028-29 - INR 1293 crore2029-30 - INR 222 crore2030-31 - INR 173 croreTotal - INR 6322 croreThe Cabinet had approved the PLI scheme for speciality steel in July 2021. Speciality steel is a value-added variety of the alloy wherein normal finished steel is worked upon by way of coating, plating, heat treatment, etc, to convert it into high value-added steel for use in various strategic sectors such as defence, space, power and automobiles among others. India meets the domestic requirement of such steel with imports with an annual forex outgo of around INR 30,000 crore.The objective of the PLI scheme is to promote manufacturing of speciality steel grades within the country and help the Indian steel industry mature in terms of technology as well as move up the value chain. Coated products, high-strength/wear resistant steel, speciality rails, alloy steel products and electrical steel are the broad five target categories under the scheme. Application from the industry to participate in the scheme will be called for on December 29 and the window will remain open for 90 days till March 31, 2022. State-run Mecon will act as the project monitoring agency for executing the PLI scheme.The scheme shall only be applicable for:i. Coated/Plated Steel ProductsGalvannealed/Galvanized Iron-Auto GradeTin mill ProductsAl-Zn CoatedColour CoatedCoated/Plated products of Metallic/Non-Metallic Alloysii. High Strength/ Wear resistant SteelHot Rolled Coil and Plates of American Petroleum Institute Gr 52<=X<=70HR Coil, Sheets and Plates API Gr >X-70High Tensile Sheets, Coil, and Plates (YS>=450Mpa)High Tensile Auto Gr Steel including Advanced High Strength Steel (CRCA)Boiler Grade/Pressure Vessels grade steelQT/Abrasion Resistant and Wear Resistant steeliii. Specialty RailsAsymmetric railsHead Hardened railsiv. Alloy Steel Products and Steel wiresTool & Die SteelValve steelBearing steelPrecipitation Hardened Stainless SteelAutomotive Powertrain Component grades of steelTyre Bead wireC' Class Zinc Coated WireZinc Aluminium Coated WireTyre Cord (Brass Coated)Oil Tempered Spring Steel WireV. Electrical SteelCold Rolled Non-Grain Oriented (CRNO)Cold Rolled Grain Oriented (CRGO) steel
India’s Ministry of Steel vide Corrigendum dated 24th December 2021 has deferred by a year the implementation of the INR 6,322 crore Production Linked Incentive scheme to promote and boost production of speciality steel domestically. Instead of 2022-23, the five-year scheme will now commence from 2023-24 and the release of the incentives under the scheme will now start from 2024-25 instead of 2023-24 proposed in the scheme guideline issued in October.PLI DistributionPLI-A: 2023-24 4%; 2024-25 5%; 2025-26 5%; 2026-27 4%; 2027-28 3%PLI-B: 2023-24 8%; 2024-25 9%; 2025-26 10%; 2026-27 9%; 2027-28 7%PLI-C: 2023-24 12%; 2024-25 15%; 2025-26 15%; 2026-27 13%; 2027-28 11%PLI-A - Galvanneal/GI-Auto-Gr; Coated/Plated products of Metallic/Non-Metallic alloys; Al-Zn coated (Galvalume); Colour Coated; HR Coil, Sheets and Plates API Gr 52<=X<=70; High Tensile Sheets, Coil, Plates, YS>=450Mpa; Asymmetric Rails; Head Hardened rails; Alloy Steel: Bearing SteelPLI-B - Tin mill Products; Auto Gr Steel AHSS (CRCA); Boiler Quality, Pressure Vessels; QT / Abrasion Resistance and Wear Resistance; Alloy Steel: Tool and Die Steel; Alloy Steel: Valve Steel; Automotive power train steel; Precipitation Hardened Stainless Steel; Tyre Bead wire; C Class Zinc Coated Wire; Zinc Aluminium Coated Wire; Tyre Cord (Brass Coated); Oil Tempered Spring Steel WirePLI-C – CRNO; CRGOPLI Outlay2024-25 – INR 775 crore2025-26 - INR 1088 crore2026-27 - INR 1394 crore2027-28 - INR 1377 crore2028-29 - INR 1293 crore2029-30 - INR 222 crore2030-31 - INR 173 croreTotal - INR 6322 croreThe Cabinet had approved the PLI scheme for speciality steel in July 2021. Speciality steel is a value-added variety of the alloy wherein normal finished steel is worked upon by way of coating, plating, heat treatment, etc, to convert it into high value-added steel for use in various strategic sectors such as defence, space, power and automobiles among others. India meets the domestic requirement of such steel with imports with an annual forex outgo of around INR 30,000 crore.The objective of the PLI scheme is to promote manufacturing of speciality steel grades within the country and help the Indian steel industry mature in terms of technology as well as move up the value chain. Coated products, high-strength/wear resistant steel, speciality rails, alloy steel products and electrical steel are the broad five target categories under the scheme. Application from the industry to participate in the scheme will be called for on December 29 and the window will remain open for 90 days till March 31, 2022. State-run Mecon will act as the project monitoring agency for executing the PLI scheme.The scheme shall only be applicable for:i. Coated/Plated Steel ProductsGalvannealed/Galvanized Iron-Auto GradeTin mill ProductsAl-Zn CoatedColour CoatedCoated/Plated products of Metallic/Non-Metallic Alloysii. High Strength/ Wear resistant SteelHot Rolled Coil and Plates of American Petroleum Institute Gr 52<=X<=70HR Coil, Sheets and Plates API Gr >X-70High Tensile Sheets, Coil, and Plates (YS>=450Mpa)High Tensile Auto Gr Steel including Advanced High Strength Steel (CRCA)Boiler Grade/Pressure Vessels grade steelQT/Abrasion Resistant and Wear Resistant steeliii. Specialty RailsAsymmetric railsHead Hardened railsiv. Alloy Steel Products and Steel wiresTool & Die SteelValve steelBearing steelPrecipitation Hardened Stainless SteelAutomotive Powertrain Component grades of steelTyre Bead wireC' Class Zinc Coated WireZinc Aluminium Coated WireTyre Cord (Brass Coated)Oil Tempered Spring Steel WireV. Electrical SteelCold Rolled Non-Grain Oriented (CRNO)Cold Rolled Grain Oriented (CRGO) steel
