Production Linked Incentive (PLI) Scheme for Specialty Steel

Production Linked Incentive (PLI) Scheme for Specialty Steel

Subject: Government Schemes

Context: Recently, the Union Cabinet has approved the Production Linked Incentive (PLI) Scheme for specialty steel.

Concept:

Specialty Steel

• It is value added steel wherein normal finished steel is worked upon by way of coating, plating, heat treatment, etc to convert it into high value added steel.
• It can be used in various strategic applications like Defence, Space, Power, apart from automobile sector, specialized capital goods etc.

About Production Linked Incentive (PLI) Scheme for Specialty Steel

• The duration of the scheme will be five years i.e. from 2023-24 to 2027-28.
• The five categories of specialty steel which have been chosen in the PLI Scheme are:

Coated/Plated Steel Products

High Strength/Wear resistant Steel

Specialty Rails

Alloy Steel Products and Steel wires

Electrical Steel

• There are 3 slabs of PLI incentives, the lowest being 4 % and highest being 12% which has been provided for electrical steel (CRGO).
• Any company registered in India, engaged in manufacturing of the identified ‘specialty steel’ grades eligible to participate.