India to invest $5.3 billion in new specialty steel capacity

Indian government’s Production Linked Incentive (PLI) Scheme offering fiscal incentives for creating new specialty steel production capacities will invest $5.3 billion to add 25 million mt per annum of new capacity and will create 525,000 jobs, a steel ministry note said on Tuesday, January 25. State-run consultants Mecon will monitor the implementation of the PLI Scheme, under which the government has offered fiscal incentives aggregating to $847 million linked to the value of production from newly-created capacities. The ministry said that, with the new creation of 25 million mt capacity, total domestic production of specialty steel will reach 42 million mt per year by 2026-27. It may be noted that through the requests of domestic steel producers the actual implementation of the PLI Scheme has been deferred from 2022-23 to 2023-24, while disbursals of funds as incentives will commence from 2024-25.