Specialty Steel
PLI incentive is intended to boost the domestic production of ‘Specialty Steel’
Eligibility
- A company registered in India under the Companies Act 2013, that is engaged in end-to-end manufacturing of the identified ‘Specialty Steel’ grades
- The net worth of the company (including that of the group companies)/JV as on date of the application shall not be less than 30% of the total committed investment
- It would be permissible to undertake a maximum 20% of the total value-addition through third parties
- Joint ventures are also eligible to participate in the scheme
Industry players have an opportunity to seek coverage or an increase in incentive percentage under the Scheme
The rate of incentives is based on incentive slabs and year of commencement as highlighted below
Incentive = (A/B) x (B or C, whichever is lower) x (PLI rate as applicable)/100 (Incentive per eligible company is subject to an annual ceiling of INR 200 Cr)
Where:
A: Incremental sales in current year with reference to previous year or the base year whichever is higher
B: Weighted Average sale price (net of taxes) in current year
C: Weighted Average sales price (net of taxes) in the base year (2019-20)
~₹ 6,322 cr. for 5 years, The period of five (05) years will commence from FY 2022-23 (PLI to be released in FY 2023-24)
Ministry of Steel
Target Segments
| S. No. | Product Categories |
|---|---|
| 1 | Coated/Plated Steel Products |
| 2 | High Strength/Wear Resistant Steel |
| 3 | Specialty Rails |
| 4 | Alloy Steel Products and Steel Wires |
| 5 | Electrical Steel |
Sources:
1. https://steel.gov.in/pli, Ministry of Steel
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