The Union Cabinet today approved Rs 6,322 crore production linked incentive (PLI) scheme for the specialty steel sector in the country for a period of next five years.
In line with the government philosophy of Atmanirbhar Bharat, the scheme hopes to facilitate investment to the tune of Rs 39,625 crore in the speciality steels sector.
Addressing media on the Cabinet decisions, union information and broadcasting minister Anurag Singh Thakur said, "With the approval of the PLI scheme, end to end manufacturing of the specialty steel domestically will get a boost. It will also cut down the import burden."
Thakur claimed the sheme will create almost half a million indirect jobs, while providing direct employment to close to 90,000 persons.
"India is the second largest manufacturer of crude steel, but we are dependent on imports for speciality steel. There is a need to enhance our domestic capabilities on specialty steel," Thakur added.
Thakur said the incentive will be capped at Rs 200 crore annually per company, adding that under the scheme five categories of specialty steels will get the benefit.
"First category is of coated plated steel products used in manufacturing of air conditioners, fridge automobile body and solar energy structure. Second is high strength air resistant steel used in the construction equipment and oil and gas transport pipes, third category is high speed rails, while the fourth one being alloy steel products and steel wires. And the fifth is electrical steel," Thakur added.
The PLI scheme is aimed at boosting consumption and reviving growth through incentives to the companies to enhance domestic productivity. Budget 2021-22 announced outlay of Rs 1.97 lakh crore for thirteen sectors.
Earlier this year, the cabinet approved PLI scheme for telecom and networking products with an outlay of Rs 12,195 crore. The government also announced PLI scheme for pharma equipment. PLI offers incentive to the tune of 4-6 percent of the incremental sales.
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