As such, the release of the incentives under the scheme will start from
2024-25 instead of 2023-24 proposed in the scheme guideline issued in October.
The deadline for submission of
applications under the Rs 6,322-crore production-linked incentive (PLI) scheme
for speciality steel is likely to be extended by a month till May 30. Several
modifications under the scheme to include sub-categories and small players have
necessitated extension of the deadline, sources said. The steel ministry has
already had a round of discussion with the Cabinet secretary to finalise the
modifications under the scheme.
The scheme is applicable to five broad product categories β coated
or plated steel
products, high strength or wear resistant steel, speciality rails, alloy
steel products and electrical steel β and 25 product sub-categories.
The last date for submission of applications has been extended once already.
While applicants were initially given the December 29-March 29 window to apply
under the scheme, it was extended by over a month till April 30. The extension
was given to accommodate some changes in the scheme as sought by the industry.
Meanwhile, the government, had in
December, deferred by a year the implementation of the scheme. Instead of
2022-23 proposed earlier, the five-year scheme will commence from 2023-24. As
such, the release of the incentives under the scheme will start from 2024-25
instead of 2023-24 proposed in the scheme guideline issued in October. The
cabinet had approved the PLI scheme for speciality steel in July 2021.
Since the scheme is fund-limited, the incentive payable shall not
exceed the budgeted allotment for the scheme. Further, the annual incentive
payable shall be capped at `200 crore per eligible company, including that of
group companies or joint ventures, across all product categories.
Specialty steel is a value-added variety wherein normal finished
steel is worked upon by way of coating, plating, heat treatment, etc, to
convert it into high value-added steel for use in various strategic sectors
such as defence, space, power and automobiles, among others. India meets the
domestic demand with imports, valued at around Rs 30,000 crore.
The objective of the PLI scheme is to promote manufacturing of
speciality steel grades within the country and help the Indian steel industry
mature in terms of technology as well as move up the value chain.
βIt is expected that the speciality steel production will become
42 million tonne by the end of 2026-27. This will ensure that approximately Rs
2.5 trillion 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 tonne as against the current 1.7
million tonne of specialty steel getting forex of Rs 30,000 crore,β the
government had said.