Part of: GS Prelims and GS –II- Governance; GS-III- Economy
In news: Recently, the Union Cabinet approved the Production-Linked Incentive (PLI) scheme (Central Sector Scheme) for manufacturing Speciality Steel (SS) with a budgetary outlay of Rs 6,322 crore over a period of five years from 2023-24.
About Speciality Steel
It is value-added steel, which is made by processing normal finished steel.
It is done by converting normal finished steel into high value-added steel by way of coating, plating and heat treatment.
Apart from the automobile sector and specialised capital goods, they can be used in various strategic applications such as defence, space, power etc.
SS are categorized in various types such as, coated/plated steel products, high strength/wear resistant steel, speciality rails, alloy steel products and steel wires, electrical steel etc.
About PLI Scheme
It is a scheme that aims to give companies incentives on incremental sales from products manufactured in domestic units.
The scheme invites foreign companies to set up units in India, however, it also aims to encourage local companies to set up or expand existing manufacturing units and also to generate more employment
It aims to cut down the country’s reliance on imports from other countries.
It was launched in April 2020, for the Large Scale Electronics Manufacturing sector, but later towards the end of 2020 was introduced for 10 other sectors.
It gave incentives of 4-6% to electronic companies, manufacturing electronic components like mobile phones, transistors, diodes, etc.
This scheme was introduced in line with India’s Atmanirbhar Bharat campaign.
The government aims to make India an integral part of the global supply chain and enhance exports
And Rs. 1.97 lakh crores have been allocated for this scheme from Financial Year 2022
