New Delhi, NFAPost: India has emerged as world’s second largest crude steel producer since 2018 and second largest consumer of finished steel since 2019, said Union Minister of State for Steel and Rural Development Faggan Singh Kulaste.
A Production Linked Incentive (PLI) Scheme for Specialty Steel was approved by the Government on 22.07.2021, with a financial outlay of Rs 6,322 crore.
Objective of the PLI Scheme is to promote domestic manufacturing of ‘Specialty Steel’ within the country by attracting capital investment, generate employment and promote technology up-gradation in the steel sector.
“Salient features of the scheme include – 3 slabs of incentives, participation only by companies registered in India, commitment to thresholds of investment and incremental production given in the scheme guidelines,” said Union Minister of State for Steel and Rural Development Faggan Singh Kulaste.
In a written reply in the Rajya Sabha, Union Minister of State for Steel and Rural Development Faggan Singh Kulaste said specialty Steel is a value-added steel wherein normal finished steel is worked upon by way of coating, plating, heat treatment and so on, useful in applications requiring specific properties such as defence, space, power, automobile, specialised capital goods etc.
Additional production of specialty steel is required for the domestic steel sector to move up the global value chain.
Application window was closed on 15.09.2022. Government received 79 applications from 35 companies out of which Memorandum of Understanding (MoU) were signed with 27 selected companies covering 57 applications.
Companies participating in the PLI scheme have committed to an investment of ₹ 29,530 crores, downstream capacity addition of 24.78 million tonne and employment to about 55,000.
Domestic production
Steel is a deregulated sector and the role of the Government is that of a facilitator. Decisions such as production, import and export are market driven, and are taken by the steel companies based on techno-commercial considerations.
Government has taken many initiatives to increase domestic steel production in the country, which include the following:-
Implementation of Domestically Manufactured Iron & Steel Products (DMI&SP) policy for promoting procurement of Made in India steel. Total value of steel procurement done since implementation of DMI&SP policy is Rs 34,808 Crore.
Establishment of a Project Development Cell (PDC) which identifies projects to facilitate new investments, evaluating the pipeline of projects and taking necessary steps to fast-track their implementation.
Notification of Production-Linked Incentive (PLI) Scheme for Specialty Steel with an outlay of Rs. 6,322 Crore to promote the manufacturing of Specialty Steel within the country.
Participation in events like World Expo held in Dubai, interaction of Ministerial delegation with domestic steel users in Japan, Korea, Russia to highlight the expertise of the steel sector in India and showcase an array of investment opportunities as well as business potential in India’s Steel sector.
Make in India initiative and the PM Gati-shakti National Master Plan with further engagement with potential users, including from Railways, Defence, Petroleum and Natural Gas, Housing, Civil Aviation, Road Transport and Highways, Agriculture and Rural Development sectors to enhance the steel usage, overall demand for steel and investment in steel sector in the country.
Adjustments in Basic Custom Duty on steel products and raw materials along with calibration of trade remedial measures like Anti-dumping duty (ADD), Countervailing duty (CVD) on certain steel products to enhance competitiveness of India’s steel sector.
