PIB News Update: Meeting of the Parliamentary Consultative Committee of the Ministry of Steel was held here today on the subject “Production-Linked Incentive (PLI) Scheme for Specialty Steel”. The meeting was chaired by the Minister of Steel Shri Ram Chandra Prasad Singh and Minister of State Shri Faggan Singh Kulaste, Members of Parliament and senior officers of the Ministry attended the meeting. Members of Parliament were briefed about the features of the Production-Linked Incentive (PLI) Scheme approved by the Union Cabinet on July 22, 2021 and notified on July 29, 2021.
It was informed that the PLI Scheme was approved with the objective of enhancing domestic production of value-added steel by attracting significant investment. The incentive is payable from 2023-24 and will be applicable for five product categories, viz, Coated/Plated Steel Products, High Strength/Wear Resistant Steel, Specialty Rails, Alloy Steel Products and Steel Wires, and Electrical Steel. The product categories were chosen after due consultations. The budgetary outlay for the scheme is Rs. 6,322 crores.
Companies registered in India engaged in manufacturing the identified product categories using steel melted and poured within the country are eligible to participate in the scheme. Selection of companies will be through a transparent selection process with equal weightages to both incremental production and investment thresholds.
It was also informed that provisions of deferment of initial year and preference to front-loaded investment have been given in the scheme keeping in view longer gestation period of investments in some product categories in steel sector. The budgetary outlay and PLI incentive payable during any given year as well as the overall outlay cannot be exceeded. Accordingly, a cap on PLI payable for every company/JV participating in the scheme has been prescribed. Through the scheme, the Government anticipates bringing in additional investment of about Rs.40,000 crores along with generating an overall employment to about 5.25 lakh. Further, it is anticipated that the composition of specialty steel in import basket will reduce to a minimum in the next few years.
Supporting the PLI scheme, Members of Parliament gave their suggestions regarding the scheme. Minister of Steel Shri Ram Chandra Prasad Singh thanked MPs for supporting the scheme and providing their valuable inputs and stated that contributing to Hon’ble Prime Minister’s vision of Atmanirbhar Bharat, the scheme is a win-win for all. He further informed that the Ministry is preparing detailed guidelines through its Project Management Agency.