The government has approved the inclusion of ‘Specialty Steel’ under the Production Linked Incentive (PLI) Scheme. The information was provided through a written reply by Union Minister for Steel Dharmendra Pradhan in the Rajya Sabha.
Key Points
- The government has given its approval for including ‘Specialty Steel’ under the Production Linked Incentive (PLI) Scheme.
- It has been included in the scheme with a 5-year financial outlay of Rs 6322 Crores.
- This inclusion in the PLI scheme will promote the manufacturing of ‘Specialty Steel’ within the country by promoting technology up-gradation, attracting capital investment, and generating employment in the steel sector.
- This will also help in improving the availability of ‘Specialty Steel’ in the country by making the country Atmanirbhar in meeting the domestic demand.
- In a deregulated, open market scenario, domestic steel price is determined by market forces of demand and supply, trends in prices of raw materials, and is also influenced by global steel trade conditions.
What is PLI Scheme?
With an aim to increase domestic manufacturing and decrease import bills, the central government introduced the Production Linked Incentive (PLI) scheme which provides companies with incentives on incremental sales from products manufactured in domestic units. The PLI scheme encourages local companies to set up and expand manufacturing units and also invites foreign companies to set shop in India. In November 2020, the scheme was introduced in 10 major sectors like Pharmaceuticals drugs, Food Products, Telecom & Networking Products, Textile Products, etc.
Last Modified: February 10, 2024