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The government has notified guidelines for the recently announced Production Linked Incentive (PLI) scheme for specialty steel. In order to boost production of specialty steel in India, attract additional investment of about Rs 40,000 crore and generate fresh 5.25 lakh job opportunities, the Union Cabinet chaired by Prime Minister Narendra Modi had approved the Rs 6,322-crore PLI scheme. The Ministry of Steel said ‘guidelines offer clarity on operational aspects of the scheme such as the application, eligibility, disbursement of incentive and so on’.

It said the five categories of specialty steel which have been included in the PLI scheme are coated/plated steel products, high strength/wear resistant steel, specialty rails, alloy steel products, steel wires and electrical steel. According to the guidelines, a company looking to avail the benefits of the scheme should be registered in India under the Companies Act. Joint Venture companies may also apply for incentives under the scheme. A transparent selection process will be followed to select the eligible company. It said preference shall be given to eligible companies ‘committing to front load their investment during the scheme period’.

As per the ministry, it is expected that the specialty steel production in India will become 42 million tonnes by the end of 2026-27. This will ensure that approximately 2.5 lakh crore worth of specialty 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 tonnes as against the current 1.7 million tonnes. Specialty steel is a 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 which can be used in various strategic applications like defence, space, power, apart from automobile sector, specialised capital goods, etc.