Shankar says Rs.6,322cr PLI will attract investments in technological capabilities
FICCI welcomes the government’s move to approve Production-linked Incentive (PLI) Scheme for Specialty Steel sector, noting that it will win Rs.40,000 crore investment and boost the production of high-grade specialty steel in the country. The PLI supported domestic Specialty Steel production will enhance exports and minimise imports for high-end steel.
Commenting on the decision taken at the cabinet meet on 22 July 2021, FICCI President Uday Shankar said, “FICCI welcomes Rs.6,322 crore PLI for specialty steel sector, which will support indigenous development, strengthen value chain and trade flows and attract investments in technological capabilities, creating a synergistic effect for the industry.”
“This move which will not only bring in investments to the tune of Rs.40,000 crore in the sector but will also provide the much-needed employment to over 5 lakh people and reduce our dependence on imports thus strengthening our resolve for Atmanirbhar Bharat.”
Commending the approval of the much-needed PLI Scheme for the steel sector, Soma Mondal, Chair, FICCI Steel Committee & Chairman, Steel Authority of India Ltd, added, “PLI scheme for specialty steel, would not only enhance domestic capabilities, production and employment but would also support nation’s quest for value added steel, strengthening its position in global steel landscape. As Indian steel industry, we welcome the initiative.”
Specialty steel imports comprise a predominant share of total imports for steel products in the country. Out of 6.7 million tonnes of imports in FY 2020-21, around 4 million tonnes import was of specialty steel alone resulting in a forex outgo of approximately Rs.30,000 crores. Therefore, the launch of PLI scheme is a step in the right direction since it will incentivize production of specialty steel domestically, said FICCI.
With a budgetary outlay of Rs.6,322 crores, the PLI scheme would cover products having both strategic and non-strategic applications, including coated, plated steel products, high strength and wear resistant steel, specialty rails, alloy steel products & steel wires as well as electrical steel.
The steel sector contributes over 2% to India’s GDP, employing around 30 lakh people, directly and indirectly. While becoming the second largest steel producer, the industry has already acquired a central position in the global steel landscape and have become a force to reckon with.
To further the growth momentum in the sector, PLI scheme would play a crucial role in not only enhancing manufacturing capabilities for value-added steel leading to increase in production and exports but will also attract foreign investments and advanced technology for manufacturing of specialty steel in the country, said FICCI. #manufacturing #investment #exports /fiinews.com
