The Ministry of Steel notified the Production Linked Incentive (PLI) Scheme for Specialty Steel in India to be implemented over FY 2023-24 to FY 2029-30 with a budgetary outlay of Rs.6,322 crore.
The objective of the PLI Scheme for specialty grade steel is to promote manufacturing of such steel grades within the country. Presently, India operates at the low end of the value chain for steel manu- facturing, with an average realization per ton being Rs.51,000-Rs.58,000 only, in contrast to our steel im- port which have an average value per ton of about Rs.1,46,000 – Rs.1,83,000. PLI incentive will boost the domestic production of ‘Specialty Steel’ and attract significant investment for production of ‘SpecialtySteel’ in the country. It will also help the Indian steel industry mature in terms of technology as well as move up the value chain.
The Scheme shall be applicable for 5 indicative product categories namely Coated/Plated Steel Products, High Strength/Wear Resistant Steel, Specialty Rails, Alloy Steel Products and Steel Wires and Electrical Steel.
“Assessment of incremental production shall be made on the basis of the sales figures of the manufactured ‘Specialty Steel’ grades. The sales figures shall be submitted by the eligible companies along with audited certificates which will be subject to verification by the Minis- try of Steel. The incremental production shall thereafter be worked out using the weighted average sales price of that grade. Detailed modalities of computation of PLI will be notified in the Scheme guidelines,” the notification said.
The Ministry of Steel shall be empowered to conduct a financial, functional, and technical audit of the selected company/companies who have signed MoU for claiming incentive under the Scheme. Statutory audit shall be conducted by CAG.
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