The Union Cabinet on Thursday approved a Production Linked Incentive (PLI) scheme of Rs 6,322 crore for special steel production for five years. The duration of the scheme will be five years from 2023-24 to 2027-28. An investment of Rs 39,625 crore is expected in special steel production. There will also be a limit of Rs 200 crore for each company under this scheme.
This scheme will serve the purpose of promoting the production of high grade special steel in the country. It will be used to cover coated or plated steel products as well as high strength or wear-resistant steel, special rails, alloy products, steel wires and even electrical steel.
Apart from boosting production, the government aims to use this scheme to increase exports and reduce dependence on imports for high quality steel. The scheme is expected to entail additional investment of about Rs 40,000 crore and capacity addition of 25 metric tonnes, the cabinet said in a statement. It will also play a role in combating unemployment in the country to some extent as the scheme will bring an additional 5,25,000 jobs to the table, of which 68,000 will be direct employment.
The objective of this PLI Specialty Steel Scheme is to address the issue of disproportionate level of imports of India in terms of steel. As a nation, we import the vast majority of our steel. This is because there is a serious ‘disability’, as the government calls it, that the steel industry faces. This is around USD 80-100 per tonne due to high logistics and infrastructure cost, high power and capital cost as well as high taxes and duties, the cabinet pointed out.
Therefore the PLI scheme for Specialty Grade Steel aims to address this obvious weak point by encouraging the production of Specialty Steel within the country. The cabinet, in a press release on Thursday, said the objective of the scheme is to incentivize eligible manufacturers between 4 per cent and 12 per cent incentive on incremental production. “The PLI incentive will help the Indian steel industry to mature in terms of technology and move up the value chain,” the cabinet said.
The cabinet also clarified that any company in India manufacturing these identified ‘specialty steel’ grades would be eligible to participate in the scheme. However, these companies will have to fulfill the condition that the base steel used for making the special steel is cast and melted in the country. This ensures that the process meets the goal of end-to-end manufacturing within the country, while also keeping in mind the Prime Minister, Atmanirbhar Bharat.
Approval of Ladakh Central University and Integrated Multipurpose Corporation
On a different note, the Union Cabinet also approved the establishment of the Central University of Ladakh. It comes in the budget of Rs 750 crores. The government aims to remove regional imbalances at the higher education level and promote overall growth and development in the Union Territory.
To help facilitate these efforts, the government is also setting up an Integrated Multi-Purpose Corporation in Ladakh. This corporation will work to support infrastructure cooperation in Ladakh. It will also act as the primary construction agency in the Union Territory.
The cabinet has announced that a budgetary allocation of Rs.25 crore share capital will be made to the corporation. This will enable the Corporation to become the first organization fully dedicated to the development of infrastructure in the region. It will work towards the development of industry, tourism, transportation and marketing of local products and handicrafts.
The government also cleared the way for a new post to be filled by a managing director with a salary of Rs 1,44,200 to Rs 2,18,200. The cabinet has kept the recurring annual expenditure of operations at Rs 2.42 crore.
The objective of this new entity (Corporation) would be to increase the domestic production of goods and services and facilitate their smooth supply in the region, as well as ensure socio-economic development of the population of the entire region and union territory. This will result in further development of human resource in Ladakh, the cabinet said.
read all Breaking Newshandjob breaking news And coronavirus news Here
.