Cabinet clears Rs 6,322 crore PLI scheme for specialty steel, Central University in Ladakh


New Delhi, Jul 22 (UNI) The Union Cabinet on Thursday approved Rs 6,322 crore production linked incentive (PLI) scheme for a group of specialty steel.

The scheme proposes to incentivise eligible manufacturers by paying between 4% to 12% incentive on incremental production. The incentives will be capped at Rs 200 crore in a year.

Announcing the decision, Union Minister for Information and Broadcasting (I&B) Anurag Thakur said that the proposed incentive scheme will create more than 5.25 lakh jobs, cut down import burden and will boost high-grade specialty steel in the country.

"The scheme will not only cut import burden but also boost end-to-end manufacturing. It will attract an investment of Rs 39,625 crore in the sector and additional production capacity of 25 MT," the Minister said.

The scheme will boost the production of high grade specialty steel in the country. Further, it will lead to enhanced exports and minimising dependence on imports for high-end steel.

As per the official statement, the duration of the scheme will be five years commencing from 2023-24 to 2027-28.

The PLI scheme would cover Coated/Plated steel products, high strength/wear resistant steel, specialty rails, alloy steel products, steel wires and electrical steel.

"These steel products are used in a variety of applications which are both strategic and non-strategic and include white goods, automobile body parts and components, pipes for transportation of oil and gas, boilers, ballistic and armour sheets meant for defence application, high-speed railway lines, turbine components, electrical steel meant for power transformers and electric vehicles," said the press note.

India currently operates at the lower end of the value chain in steel sector and value added steel grades are largely imported in India.

Among other major decisions, the Cabinet chaired by Prime Minister Narendra Modi cleared the proposal to establish Central University of Ladakh at a cost of Rs 750 crore.

The I&B Minister Mr Thakur said that setting up of the University will address regional imbalances in higher education level and promote overall growth & development of the Union Territory (UT).

An integrated multi-purpose Corporation was also cleared for Ladakh. The corporation will help in infrastructure cooperation and will act as the main construction agency in the newly-carved out UT.