PLI
2.0 FOR STEEL SECTOR - ECONOMY
News:
Govt plans to introduce
PLI 2.0 for specialty steel
What's
in the news?
●
The government is working towards PLI
scheme 2.0 and securing raw material supply for the steel sector in 2024.
Current
status of Steel Industry in India:
●
India ranks as the second largest producer of crude steel in the world.
Concerns
of Steel Sector in India:
●
India remains dependent on imports to meet 90% of its coking coal requirement.
●
Infrastructure
Bottlenecks:
○
Inadequate transportation facilities,
inefficient logistics, and power shortages, hinder the smooth operation of the
steel industry.
●
Global
Competition:
○
Dumping of steel products especially from
China and Vietnam in the past had major impacts on the industry.
Steps
taken by Government:
●
Steel
Scrap Recycling Policy:
○
The Policy is for promoting the scientific
processing and recycling of ferrous scrap.
●
Brand
India labelling:
○
To differentiate Indian quality steel from
the others.
●
PIL
Scheme for steel sector
Go
back to basics:
PLI
Scheme for Steel Sector:
●
The Production Linked Incentive (PLI)
scheme was launched in March 2020 to boost Indian manufacturing.
Objective:
●
To make domestic manufacturing globally
competitive and to create global Champions in manufacturing.
Sectors:
●
Mobile Manufacturing and Specified
Electronic Components
●
Critical Key Starting materials/Drug
Intermediaries & Active Pharmaceutical Ingredients
●
Manufacturing of Medical Devices
●
Automobiles and Auto Components
●
Pharmaceuticals Drugs
●
Specialty Steel
●
Telecom & Networking Products
●
Electronic/Technology Products
●
White Goods (ACs and LEDs)
●
Food Products
●
Textile Products - MMF segment and
technical textiles
●
High-efficiency solar PV modules
●
Advanced Chemistry Cell (ACC) Battery
●
Drones and Drone Components
Incentives:
●
4%
to 6% on incremental sales (over the base year) of goods
manufactured in India.
●
It is given for a period of five years.