New Delhi: Industry on Thursday said the government’s decision to extend the benefit of the Production Based Incentive (PLI) scheme to specific steel products will boost manufacturing as well as investment in research and development and technology in the country. Anil Kumar Choudhary, chairman of the Minerals and Metals Committee of the industry body PHD Chamber of Commerce, said that this will promote the manufacturing of special types of listed steel products and pave the way for a self-reliant India.
The Union Cabinet on Thursday approved a Rs 6,322-crore Production Based Incentive (PLI) scheme to boost the production of special types of steel in the country. The initiative aims to boost domestic manufacturing and boost exports from the region.
Industry body CII said that the PLI will definitely encourage setting up of domestic manufacturing factories for special steel in the country and investment in R&D and technology.
Seshagiri Rao MVS, chairman of CII’s National Committee on Steel Affairs and joint managing director and group CFO of JSW Steel, said, “The condition under the plan is that the steel is melted and cast within the country to make special steel. This means that the raw material used to manufacture the special steel will be made in India itself. That is, the complete manufacturing of the product will be ensured in the country.
T V Narendran, CEO and Managing Director, Tata Steel said, “We welcome the announcement of the PLI scheme for Special Steel. Tata Steel imports has been a frontrunner in reducing imports, especially in the auto sector…. In the case of value-added products, the PLI scheme will give us additional benefits in future.”
Jindal Steel & Power Ltd. The management said that the banks will now have a positive outlook towards the steel industry as the announcement of the PLI sends a clear message that the steel sector has the support of the government.
SAIL (Steel Authority of India) Chairperson Soma Mandal said that the important decision to introduce PLI scheme for special steel will have a positive impact on the domestic steel industry and SAIL in particular.
He said that the PLI scheme for special steel would encourage new technology and innovation in the domestic steel sector.
DK Mohanty, Chairman and Managing Director, RINL said, “The approval of the PLI scheme by the Union Cabinet is a welcome step. This will help in making India truly self-reliant in the field of manufacturing of special steel. This will not only boost production of quality special steel by reducing imports for the end users but will also provide an opportunity to the producers to export the finished products.