Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Production Linked Incentive (PLI) Scheme for specialty steel, which is expected to bring in investment of approximately Rs 40,000 crore and capacity addition of 25 million mt.
The duration of the scheme will be five years, from 2023-24 to 2027-28. It will have a budgetary outlay of Rs 6,322 crores, the scheme. The scheme will give employment to about 5,25,000 people of which 68,000 will be direct employment.
Speciality steel has been chosen as the target segment because out of the production of 102 million mt steel in India in 2020-21, only 18 million mt value added steel/speciality steel was produced in the country.
Apart from this out of 6.7 million mt of imports in the same year, about 4 million mt import was of specialty steel alone resulting in forex outgo of about Rs 30,000 crore.
With this initiative, India will move up the steel value chain and come at par with advanced steel making countries like Korea and Japan.
It is expected that the speciality steel production will become 42 million mt by the end of 2026-27. This will ensure that about Rs 2.5 lakh crore worth of speciality steel will be produced and consumed in the country which would otherwise have been imported.
Similarly, the export of specialty steel will become around 5.5 million mt as against the current 1.7 million mt of specialty steel getting forex of Rs 33,000 crore.