Production-linked incentives: PLI scheme for special steel: Government gets 10

The government’s ambitious PLI scheme for specialty steel has received only 10 applications, and even the deadline for submission of interest under the scheme was doubled after some concerns were raised by steel makers.

The deadline for submission of applications under the PLI scheme for specialty steel is expected to be extended for the third time, a senior government official said.

Initially, March 29 was the last date for manufacturers to apply for benefits under the PLI (Production-Linked Incentive) scheme for special steel. It was later extended to April 30 and again to May 31, 2022.

In response to a question on the number of applications received by the players under this scheme, he replied that 10 applications and 58 registrations have been accepted by the players so far.

Asked again about the rationale behind extending the deadline, the official said “the ministry has not yet come up with a modified scheme.”

Some steel makers had earlier expressed concern over the scheme, after which the government started the process of making some changes in the PLI scheme for specialty steel.

In the modified project, the government is working on uniform incentives for special steel production. More grades, especially those used in the defense sector, will be added to the scheme.

For secondary players, the minimum investment cap and minimum power set-up will also be removed, he said.

On July 22 last year, the Union Cabinet, headed by Prime Minister Narendra Modi, approved a Rs 6,322 crore PLI project to boost special steel production in India.

The move is expected to attract additional investment of around Rs 40,000 crore and create 5.25 lakh jobs.

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