The Indian government has deferred by a year the disbursals of fiscal incentives under the Production Linked Incentive (PLI) Scheme to steel companies setting up new capacities of specialty steel, government sources said on Tuesday, December 28.
The sources said that the government had earlier this year earmarked around $843 million to be disbursed to steel companies creating specialty steel capacities, over a period of five years.
The scheme which was to start disbursing fiscal incentives under the scheme from 2023-24 for new capacities created between now and then has now been deferred by a year and disbursals of funds to steel companies will now commence from 2024-25.
The sources said that deferment of funds by a year had been sought by the domestic steel industry as the completion of new capacities and the claiming of the fiscal incentives need more time.
Steel companies planning such new capacities and claiming benefits under the PLI Scheme will need to register with the government starting from December 29, 2021 and the window for such registration will remain open for 90 days.