Decision to help create more than 5,25,000 jobs in the country
To cut down import dependence and promote the Made-in-India campaign, the Union Cabinet on Thursday gave its nod for a ₹6,322 crore production-linked scheme for specialty steel.
Under this scheme around ₹2.5 lakh crore worth of steel can be manufactured over a period of five years. He added that it is a demand-driven scheme which will fulfil the country’s need for steel and create opportunities for export.
Cap on incentive
Thakur further explained that there is a cap on the incentive that will be provided.
“Per group, it is capped at ₹200 crore. So, no company will get the incentive of more than ₹200 crore per year,” he said.
There are five categories of this specialty steel which are coated/plated steel products used in AC, fridge, solar energy structure etc., high strength/wear resistant products used in construction equipment, and armour bodies, specialty rails used in high speed rails, alloy steel wires used in crankshaft walls, tyre tracks and electrical steels used in transformers or electric motors.
Welcoming the move, Managing Director of Jindal Steel and Power, Vidya Rattan Sharma said, “Currently, we export more than 10 million tonnes of steel, but also import 5 million tonnes of specialty steel. This particular incentive is for Atmanirbhar Bharat Abhiyaan and this decision will help to invest in railway and forging grade of steel.”
SAIL Chairman Soma Mondal said, “… this significant decision to introduce PLI for the specialty steel will have far reaching positive impact on the domestic steel industry in general and SAIL in specific. We shall consider the scheme while deciding our next capex cycle and product-mix in the coming times.”
Commenting on the cabinet’s decision, TV Narendran, CEO and MD, Tata Steel said it is a step in the right direction which will boost investment in the high grade steel sector and drive global competitiveness of the Indian manufacturers. “…Tata Steel has been a pioneer in import substitution, especially in the auto sector. As we continue on our journey of growth, the PLI scheme will provide an added advantage to our future plans where value-added products will be a major focus,” he added.
Bhaskar Chatterjee, Secretary General of Indian Steel Association said the scheme will play a pivotal role in enabling growth by promoting investments for the steel industry that historically has contributed immensely towards nation-building, and continues to do so.