67 Entries Selected Under PLI Scheme For Specialty Steel, To Attract New Investment Of Rs 42,500 Crore

The government has selected 67 applications from 30 companies under its Production-Linked Incentives (PLI) scheme for specialty steel.

The scheme will lead to new investments of Rs 42,500 crore with a downstream capacity addition of 26 million tonne and employment generation potential of 70,000.

Major players like Steel Authority of India Limited (SAIL), ArcelorMittal Nippon Steel India, Tata Steel and JSW Steel as well as multiple other smaller companies are present in the list of approved applicants.

The Scheme

The Union Cabinet in July 2021 had approved a Rs 6,322-crore PLI scheme to promote the manufacturing of 'Specialty Steel' within the country.

The PLI scheme for specialty steel will promote manufacturing of special steel grades within the country and help the Indian steel industry mature in terms of technology as well as move up the value chain. 

The government had opened the application window in December 2021 and after several extensions, the final window for participation in the PLI scheme closed on 15 September 2022.

A total of 79 applications were received from 35 small and large steel-making companies with investment commitments totalling Rs 46,000 crore to add downstream capacity of 28 million tonnes (MT) by 2030, the Steel Ministry said in a statement.

Road Ahead

The selected companies will be setting up additional capacity of 26 million tonnes as part of the five-year scheme.

Based on the incremental production of manufactured steel grade year-on-year with respect to base year, incentives will be provided to the selected firms .

Incentive under the scheme shall be provided for a maximum period of five years from Financial Year (FY) 2024-25 to FY 2030-31.