India Signs Agreements With 26 Companies Under PLI Scheme For Specialty Steel

The Union Steel Minister of India, Jyotiraditya M Scindia, announced on Thursday that agreements have been signed with 28 companies for 54 applications under the production linked incentive (PLI) scheme for specialty steel. Speaking at the Global Zinc Summit 2023 in the national capital, the minister stated that this would lead to an investment of Rs 30,000 crore, a capacity addition of 28 million tons, and potential employment generation for 25,000 people.

The PLI scheme for speciality steel includes steel products with zinc. The scheme has attracted interest from various industries, such as galvanising, structurals, wires, cables, and trains. In addition, there are new markets for zinc in renewable energy, rural electrification, and galvanising rebars. The awards for the 54 applications represent a significant opportunity for the zinc industry to expand its footprint and contribute to India’s economy.

Capacity Enhancement

India is the fourth-largest producer of zinc globally, contributing to 6% of the world’s capacity alone. Furthermore, 80% of the non-ferrous metal produced in India is consumed domestically, highlighting the potential for increased domestic consumption of zinc in the country. Zinc has a variety of applications, such as galvanising, which provides corrosion protection to iron and steel. Zinc is also used to produce brass and bronze alloys, and it is used in die-casting to manufacture automotive and electrical components.

The PLI scheme aims to increase India’s production of specialty steel and enhance the country’s manufacturing capabilities. The scheme offers incentives to manufacturers based on their production levels, which will increase their competitiveness and boost exports. Furthermore, the scheme will help reduce India’s dependence on imports, improve the domestic supply chain, and encourage investment in the sector.

Insight

The agreements signed with 28 companies under the PLI scheme for specialty steel represent a significant investment in India’s manufacturing capabilities. The scheme offers incentives to manufacturers to increase production levels, enhance competitiveness, and boost exports. The expansion of the industry in India is a positive step towards increasing domestic consumption and reducing imports, as well as creating employment opportunities for the local population.

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