News Steel

Steel incentive scheme gets rolling, government inks 27 MoUs

The government on Friday signed agreements with 27 companies, kick-starting the ₹6,322-crore production-linked incentive (PLI) scheme for speciality steel which is expected to attract investments of up to ₹30,000 crore over the next five years.

The scheme is seen creating 25 million tonnes of additional speciality steel manufacturing capacity in the country besides 55,000 new jobs, as per a statement issued by the Indian Steel Association (ISA).

All the primary steelmakers in the country, including Tata Steel, JSW Steel, Steel Authority of India, ArcelorMittal Nippon Steel India and Jindal Steel & Power, are participating in the scheme directly or through subsidiaries. Multiple smaller secondary steelmakers have also qualified for the scheme.

Speciality steel includes value-added grades of steel made by processing finished steel. While India is the world’s second-largest manufacturer of steel, the country still relies on imports for its speciality steel requirement.

In all, memoranda of understanding (MoUs) were signed for 57 applications from the 27 companies.

“The PLI scheme for speciality steel is bringing in very large investments for capacity build up and will make India self-reliant in almost the entire range of steel products,” said Alok Sahay, secretary-general of the ISA.

“Even today, a minuscule quantity is required through imports,” he said. But considering the fast-paced growth in sectors such as automobiles, capital goods, white and yellow goods, and the intermediate sector, a delay in capacity augmentation of speciality steel would have led to import dependence in the future, he added.Some examples of speciality steel include alloy steel, coated and plated steel, electrical steel, high-strength steel, and wear-resistant steel. Electrical steel is used in applications like power distribution, transformers and electric motors, and India relies on supplies from countries like Japan and South Korea for this.

“All the steel players will be part of the PLI scheme, and with this initiative, the ministry of steel and the steel industry are partnering to complement and supplement towards the growth of the steel industry with commitments from both sides,” said Dilip Oommen, president of the ISA.

Source link

Leave a Comment