Cabinet approves PLI scheme for specialty steel, to generate 5.25 lakh jobs
- The scheme is expected to bring in investment of approximately ₹40,000 cr and capacity addition of 25 MT
- I&B Minister Anurag Thakur said ₹39,625 crore investment is expected in specialty steel manufacturing
The Union Cabinet on Thursday approved Production-linked Incentive (PLI) Scheme for Specialty Steel with incentives worth ₹6,322 crore to be provided over five years. The scheme is expected to bring in investment of approximately Ra 40,000 crore and capacity addition of 25 MT.
In a press briefing in New Delhi, I&B Minister Anurag Thakur said the scheme proposes to incentivize eligible manufacturers by paying between 4% to 12% incentive on incremental production.
He also said that ₹39,625 crore investment is expected in specialty steel manufacturing, moreover, a cap of ₹200 crore per company will be imposed under the PLI scheme.
The scheme will cover coated/plated steel products, high strength/wear resistant steel, specialty rails, alloy steel products, steel wires and electrical steel. Any company registered in India, engaged in manufacturing of the identified 'specialty steel' grades eligible to participate.
Highlighting the benefits, the Union Minister pointed out the the PLI scheme for steel sector will enhanced exports and minimise dependence on imports for high-end steel in the country, bring in investment of approximately ₹140,000 crore, generate potential employment of about 5.25 lakh.
"India presently operates at the lower end of the value chain in Steel sector. Value added steel grades are largely imported in India. This is because of the disabilities faced by the steel industry to the tune of USD 80-100 per ton, on account of higher logistics and infra cost, higher power and capital cost and, taxes and duties," the Union Cabinet said in a statement.
The Union Minister also announced the formation of a Central University in the union territory of Ladakh. This upcoming university will be constructed with a project cost of ₹750. The first phase of the university will be completed in four years.
The minister also announced integrated multipurpose corporation for Ladakh
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First Published:22 Jul 2021, 03:26 PM IST
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