‘Specialty Steel’ included under the PLI Scheme

The Union Minister for Steel, Shri Dharmendra Pradhan, said in a written reply in Parliament that the Government has given its approval for inclusion of ‘Specialty Steel’ under the Production Linked Incentive (PLI) Scheme.

Highlights

• For this purpose, a 5-year financial outlay of Rs 6322 Cr has also been approved.
• This move was taken by the government in order to promote the manufacturing of ‘Specialty Steel’ within the boundary of the country.
• The manufacturing can be promoted by attracting the capital investment, promoting the technology up-gradation and by generating employment in steel sector.
• This move by the government would help to improve the availability of ‘Specialty Steel’ in India by making the country Atmanirbhar with respect to the domestic demand.

How Price is determined?

In a deregulated and open market scenario, the domestic steel price is determined through the market forces of demand and supply. It also depends upon the trends in prices of raw materials.  The price of the steel is also influenced by the global steel trade conditions.

PLI Scheme

The Production Linked Incentives scheme was launched with the aim to give the companies incentives on their incremental sales from those products which are manufactured in domestic units. This scheme also invites the foreign companies to set units in India.  The scheme also seeks to encourage the local companies in order to set up and expand the manufacturing units.

Benefits of PLI Scheme

Coverage of the sectors under the scheme makes the Indian manufacturers globally competitive. It also attracts the investment in the core competency and cutting-edge technology areas. The scheme also ensures the efficiency and creates the economy of scale. The scheme strengthens the exports with the aim of making India a part of global supply chain.

Specialty steels

These are also called as alloy steels. They are composed of the additional alloyed materials that results into special properties of the final product. The steels are engineered so as to provide a superior performance under specific conditions

Month: Current Affairs - February, 2021