'Special steel production under PLI schemes to save forex outgo'

NEW DELHI: Domestic production of special steel under PLI schemes for specialty steel will help cut down imports of value-added products and save forex outgo, Union Minister Faggan Singh Kulaste said.

As many as 27 companies have signed 57 agreements with the government under the first edition of the production-linked incentive (PLI 1.0) scheme for specialty steel.

To promote the production of special types of steel in the country and to imbibe the concept of self-reliant India, ''Our government launched PLI scheme for Specialty Steel to become Atmanirbhar in specialty steel output and increase its capacity,'' Kulaste told PTI.

The domestic production of special grades of steel will not only reduce the country's dependence on imports but also save forex outgo worth thousands of crores, he said.

After the success of Rs 6,322-crore PLI 1.0, there are concrete plans to bring in the second edition of the scheme, Kulaste said without sharing any further details.

Under PLI 1.0, the selected companies will be manufacturing coated/plated steel products, high strength/wear-resistant steel, speciality rails, alloy steel products, steel wires and electrical steel, the minister said.

This will see an additional investment of Rs 30,000 crore in the domestic steel sector, leading to a capacity addition of 25 million tonnes per annum and creating 55,000 new job opportunities, he said.

The country is moving towards the increased output of value-added steel and usage of new-age technologies in the sector, he added.

The minister further asked the industry stakeholders to share their suggestions and feedback on the next edition of PLI scheme for specialty steel so accordingly a policy can be drafted at the earliest.