Domestic production of specialty steel under PLI schemes will help reduce imports and save foreign exchange, according to Union Minister Faggan Singh Kulaste. 27 companies have already signed 57 agreements with the government under the first edition of the production-linked incentive scheme for specialty steel. The PLI scheme aims to increase self-reliance in specialty steel output and capacity while promoting the production of special types of steel in India. After the success of PLI 1.0, there are plans to bring in the second edition of the scheme. Selected companies will be manufacturing various steel products, leading to a capacity addition of 25 million tonnes per annum and creating 55,000 new job opportunities. The minister has asked industry stakeholders for feedback on the next edition of the PLI scheme for specialty steel.
Production of Special Steel Under PLI Schemes Will Help Save Forex Outgo: Faggan Kulaste
Union Minister Faggan Singh Kulaste has said that domestic production of special steel under PLI schemes for specialty steel will help cut down imports of value-added products and save forex outgo. As many as 27 companies have signed 57 agreements with the government under the first edition of the production-linked incentive (PLI 1.0) scheme for specialty steel. This is in line with the government’s push to promote the production of special types of steel in the country and to become self-reliant in specialty steel output while increasing its capacity.
The domestic production of special grades of steel will not only reduce the country’s dependence on imports but also save forex outgo worth thousands of crores, he said. After the success of Rs 6,322-crore PLI 1.0, there are concrete plans to bring in the second edition of the scheme, Kulaste said, without sharing any further details.
Under PLI 1.0, selected companies will be manufacturing coated/plated steel products, high strength/wear-resistant steel, specialty rails, alloy steel products, steel wires, and electrical steel. This will see an additional investment of Rs 30,000 crore in the domestic steel sector, leading to a capacity addition of 25 million tonnes per annum and creating 55,000 new job opportunities.
The country is moving towards the increased output of value-added steel and usage of new-age technologies in the sector. The minister further asked industry stakeholders to share their suggestions and feedback on the next edition of the PLI scheme for specialty steel so that a policy can be drafted at the earliest.
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