India’s ministry of steel has signed 57 agreements with 27 companies for the creation of new capacities for production of an aggregate 25 million mt of special steel over the next five years at a total investment of $3.66 billion, minister of steel Jyotirditya Scindia said in a statement on Thursday, April 20.
The agreements between the ministry and the steel companies were signed under the Production Linked Incentive (PLI) Scheme whereby steel companies will be entitled to fiscal incentives from the government fund of $770 million set up for the steel sector. The funds will be disbursed over a period of five years, linked to a formula based on each metric ton of new capacity created for the production of speciality steel.
The minister said that India has emerged as the second largest steel producer in the world and its per capita consumption of steel has increased from 56 kg to 78 kg over the last nine years.
He said that in the fiscal year 2013-14 domestic steel capacity was 100 million mt and production was 82 million mt, whereas in the fiscal year 2022-23 installed capacity was 154 million mt and production was 125 million mt.