Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

The Indian Expenditure Finance Committee (EFC) of India has approved the $870mn Production Linked Investment (PLI) scheme for specialty steel manufacturing, according to media reports.


After the nod, the scheme has been gone to the cabinet for approval. The Steel Ministry is at present finalizing the incentive slabs and the eligibility criteria for the cabinet note.


The PLI scheme seeks to boost the manufacturing and export capabilities of the Indian steel industry by restricting specialty steel imports.


As part of the new scheme, five categories and 20 sub-categories have been identified. MoUs between companies with 20pc value addition by third parties, joint ventures, end-to-end manufacturing will be eligible under the new PLI.


API grade specialty steel producers will get higher incentives followed by electro-galvanized steel and tin mill coated metal producers. Other alloy coated steel producers like aluminum, zinc, and hot-rolled steel producers will get lower incentives.


Steelmakers are likely to invest in the PLI scheme to take their specialty steel manufacturing to the next level. At present, three PLI schemes are up for the final cabinet approval, including the specialty steel scheme. 


The government seeks to address supply chain issues faced by Indian firms during the pandemic by boosting PLI investments. The new PLI scheme is designed to incentivize manufacturing across industries by attracting new technologies, said the Department for Promotion of Industry and Internal Trade. This will help the Indian steel industry to meet global standards and bring the economy to scale. 




Leave a Reply

Your email address will not be published.