The Production Linked Incentive (PLI) Scheme for specialty steel was introduced to encourage investment and enhance the production of high-value steel in the country. This scheme encompasses five major product categories: Coated/Plated Steel Products, High Strength/Wear-Resistant Steel, Specialty Rails, Alloy Steel Products & Steel Wires, and Electrical Steel.
As steel is a de-regulated sector, the government primarily serves as a facilitator, fostering a supportive policy framework to drive its growth. To strengthen and expand the steel industry, the government has implemented several key initiatives to create an enabling environment.
- Promotion of ‘Made in India’ steel and expanding investments:-
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- Implementation of Domestically Manufactured Iron & Steel Products (DMI&SP) Policy for promoting ‘Made in India’ steel for Government procurement.
- Launch of the Production Linked Incentive (PLI) Scheme for Specialty Steel to promote the manufacturing of ‘Specialty Steel’ within the country and reduce imports by attracting capital investments.
- Improve raw material availability and reduce raw material cost:-
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- Reduction in the Basic Customs Duty on Ferro Nickel, a raw material from 2.5 percent to zero, making it duty free.
- Extension of duty exemption on ferrous scrap upto 31st March 2026, in the Budget 2024.
- Import monitoring and quality control:-
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- Revamping of Steel Import Monitoring System (SIMS) for effective monitoring of imports to provide granular details on imports to the domestic steel industry.
- Introduction of steel Quality Control Orders thereby banning sub-standard/ defective steel products in domestic market as well as imports to ensure the availability of quality steel to the industry, users and public at large.
This information was given by the Minister of State for Steel and Heavy Industries, Shri Bhupathiraju Srinivasa Varma in a written reply in the Rajya Sabha today.