India’s Ministry of Steel has proposed definitive production linked incentives (PLI) for domestic production of high grade automotive steel and electrical grade steel like cold rolled grain oriented (CRGO) on which the country is heavily import dependant, a government official said.
He said that fiscal incentive at rates ranging between 3-5 percent of incremental output of special steels will be offered to producers to increase production of these steel products which are heavily imported into the country.
The government has earmarked an estimated $380 million outgo of funds on account of PLI offered to special steel producers based on incremental outputs.
Additionally, the ministry proposal envisages offering a total of $78 million under phased manufacturing program for steel producers to undertake setting up new capacities for CRGO steel over the next five years, the official added.
During last fiscal, India had imported 217,000 mt of CRGO steel. Between April-July, CRGO steel imports had been registered at 44,800 mt according to government data.
