Centre postpones PLI scheme for speciality steel by a year

New Delhi, 28 Dec (KNN) The implementation of the `6,322-crore production-linked incentive (PLI) scheme to promote and boost production of speciality steel domestically has been delayed by the government for a year, as published in FE.

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.

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. 

The domestic requirement of India of such steel is met with imports with an annual forex outgo of around INR 30,000 crore.

Sources said that the implementation of scheme has been deferred following requests from the industry and potential applicants.

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 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.