{"id":85879,"date":"2021-07-23T17:14:36","date_gmt":"2021-07-23T11:44:36","guid":{"rendered":"https:\/\/newsmakhani.com\/?p=85879"},"modified":"2021-07-23T17:14:36","modified_gmt":"2021-07-23T11:44:36","slug":"faqs-on-production-linked-incentive-pli-scheme-for-specialty-steel-approved-by-union-cabinet","status":"publish","type":"post","link":"https:\/\/newsnarad.com\/hi\/faqs-on-production-linked-incentive-pli-scheme-for-specialty-steel-approved-by-union-cabinet\/","title":{"rendered":"FAQs on Production Linked Incentive (PLI) Scheme for Specialty Steel Approved by Union Cabinet"},"content":{"rendered":"

\u0915\u094d\u0937\u092e\u093e \u0915\u0930\u0947\u0902, \u092f\u0939 \u0938\u092e\u093e\u091a\u093e\u0930 \u0906\u092a\u0915\u0947 \u0905\u0928\u0941\u0930\u094b\u0927 \u0915\u0940 \u092d\u093e\u0937\u093e \u092e\u0947\u0902 \u0909\u092a\u0932\u092c\u094d\u0927 \u0928\u0939\u0940\u0902 \u0939\u0948\u0964 \u0915\u0943\u092a\u092f\u093e \u092f\u0939\u093e\u0901 \u0926\u0947\u0916\u0947\u0902\u0964<\/a><\/p>

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DELHI : 23 JUL 2021\u00a0<\/strong><\/h2>\n<\/div>\n
<\/div>\n

The Union Cabinet, chaired by the Prime Minister, Shri Narendra Modi approved the Production Linked Incentive (PLI) Scheme for specialty steel yesterday.
\nhttps:\/\/youtu.be\/8YTK7STbooU<\/a>
\nFAQs in its regard may be seen below:<\/p>\n

1. What is PLI Scheme for specialty steel?<\/strong>
\nPLI stands for \u201cProduction-Linked incentive\u201d. The objective of PLI scheme for \u2018speciality steel\u2019 is to promote manufacturing of specialty steel grades within the country by providing financial incentives. Presently the country operates at the low end of value chain in steel manufacturing. The PLI incentive is expected to boost the domestic production of specialty steel by,
\n\u2022 attracting significant investment
\n\u2022 infusing technology and know-how
\n\u2022 promoting exports.
\n2. What is \u2018specialty steel\u2019?<\/strong>
\n\u2018Specialty steel\u2019 is a downstream, value-added product of steel manufacturing process. However, there is no universal definition of \u2018specialty steel\u2019.
\n3.\u00a0What is covered under speciality steel as per the PLI Scheme?<\/strong>
\nThe scheme covering Specialty steel grades shall be applicable for the following five (05) indicative product categories:
\ni. Coated\/Plated Steel Products
\nii. High Strength\/ Wear resistant Steel
\niii. Specialty Rails
\niiii. Alloy Steel Products and Steel wires
\nv. Electrical Steel
\n4.\u00a0Why have these products been chosen?<\/strong>
\nThe identified products have-
\n\u2022 High potential for domestic production, import substitution, exports and attracting significant investments.
\n\u2022 Demand of stakeholders
\n\u2022 Niche applications.
\n5. How were these products identified?<\/strong>
\n\u2022 Detailed consultations with the industry and inter-ministerial consultations were held before finalising the products.
\n6.\u00a0What is the incentive outlay under the scheme?<\/strong>
\nThe total outlay will be \u20b96,322 crore.
\n7.\u00a0What is the tenure of the scheme?<\/strong>
\n\u2022 Incentive under the scheme will be provided for a maximum period of five (5) years.
\n\u2022 The first incentive will be payable from 2023-24 based on the commercial production of 2022-23.
\n8.\u00a0Can the scheme period be deferred?<\/strong>
\n\u2022 For some product categories, the initial year may be deferred by up to two years.
\n\u2022 In case of adverse circumstances, such as force majeure, companies may be allowed deferment of the initial year by one year with the approval of Empowered Group of Secretaries (EGoS).
\n9.\u00a0Who can apply under the Scheme?<\/strong>
\nA company registered in India under the companies Act 2013, that is engaged in manufacturing of the identified \u201cSpecialty steel\u201d grades, subject to the input material being melted and poured within the country using iron ore\/scrap\/sponge iron\/pellets etc. shall be eligible to apply for incentive under the scheme. End to end manufacturing will thus take place within the country
\n10. How will the country be benefitted through the scheme?<\/strong><\/p>\n

\n\n\n\n\n\n\n\n\n
 <\/td>\nBaseline<\/p>\n

(2019-20)<\/td>\n

Projected<\/p>\n

(2026-27)<\/td>\n

In %<\/td>\n<\/tr>\n
Volume<\/td>\nValue<\/td>\nVolume<\/td>\nValue<\/td>\n<\/tr>\n
(Million tonnes)<\/td>\n(\u20b9 Cr)<\/strong><\/td>\n(Million tonnes)<\/td>\n(\u20b9 Cr)<\/strong><\/td>\n<\/tr>\n
Production<\/td>\n17.6<\/td>\n97,287<\/td>\n42.2<\/td>\n2,42,838<\/td>\n140%<\/td>\n<\/tr>\n
Import<\/td>\n3.7<\/td>\n29,256<\/td>\n0.9<\/td>\n7355<\/td>\n-76%<\/td>\n<\/tr>\n
Export<\/td>\n1.6<\/td>\n9,474<\/td>\n5.5<\/td>\n33,024<\/td>\n244%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

\u2022\u00a0Projected production of the identified \u2018specialty steel\u2019 grades is expected to more than double by 2026-27. (Baseline production is 17 million tonnes, projected production is 42 million tonnes).
\n\u2022 Projected export (in volume) is expected to become more than 3 times the present volume.
\n\u2022 Projected import (in volume) is expected to reduce by 4 times.
\n\u2022 An expected investment of \u20b939,625 crore by 2029-30 in \u2018specialty steel\u2019.
\n11.\u00a0Who are the expected beneficiaries?<\/strong>
\n\u2022 Major Integrated steel players in the categories Coated\/Plated products, High strength\/wear resistant steel, and Electrical steel.
\n\u2022 Alloy steel manufacturers and secondary steel manufacturers in Alloy steel products and steel wires.
\n12.\u00a0Will MSMEs benefit in the scheme?<\/strong>
\n\u2022 The scheme seeks to offer a level playing field to both the integrated steel manufacturing companies, downstream steel manufacturers including those in the MSME category.
\n\u2022 MSMEs which are into manufacturing the identified specialty steel grades are expected to participate in the category, \u201cAlloy steel products and steel wires\u201d.
\n13.\u00a0What is the mode of applying under the PLI scheme?<\/strong>
\nA company may apply for availing benefits under the scheme through an online portal.
\n14.\u00a0Can a company apply for multiple product category\/ sub-category?<\/strong>
\nYes, a company may apply for as many products category\/sub-category as it desires. However, it needs to submit separate application for each product sub-category along with non-refundable application fee. The PLI is fund-limited, however, with a cap of \u20b9200 crore on an eligible company across all product categories.
\n15.\u00a0What are the eligibility criteria under PLI Scheme?<\/strong>
\nThe criteria are \u2013 threshold minimum incremental production and minimum investment.
\n16.\u00a0Is an applicant having existing unit producing specified product in the scheme eligible for PLI scheme under that product sub-category?<\/strong>
\n\u2022 All applicants committing to the minimum thresholds of incremental production and investment are eligible.
\n\u2022 The scheme does not distinguish between greenfield and brownfield investments.
\n\u2022 The investment\/production must be in addition to the existing facilities and cannibalisation of the existing product lines will not be acceptable.
\n17.\u00a0What is threshold incremental production rate?<\/strong>
\nIt is the incremental production rate for a given product sub-category and will be notified in the guidelines. Applicants are required to commit achieving either equal to or above threshold incremental production rate to be eligible for participation in PLI scheme.
\n18. What are permissible investments?<\/strong>
\nFor each product category\/sub-category, only investments in the \u201clist of permissible investment\u201d as may be notified in the guidelines are considered acceptable in the scheme.
\n19. How is incentive calculated under PLI scheme?<\/strong>
\nIncentive is calculated based on the incremental production which is multiplied by the incentive slab as applicable and the weighted average sales price of the product. For example,
\nA = Incremental sales in current year with reference to previous year or the base year whichever is higher<\/p>\n

B = Weighted Average sale price (net of taxes) in current year
\nC = Weighted Average sales price (net of taxes) in the base year (2019-20)
\nIncentive = (A\/B) x (B or C, whichever is lower) x (PLI rate as applicable)\/100
\n*Current year means the year for which PLI has been claimed.
\n20.\u00a0What if a selected company is not able to meet any of the threshold criteria for a given year?<\/strong>
\nIf an applicant company is not able to meet threshold criteria, no incentive shall be payable to the company for that year, but full cumulative production must be made by the selected company in the following year.
\n21.\u00a0What are the PLI slabs at which incentive will be payable?<\/strong><\/p>\n

\n\n\n\n\n\n\n
PLI Slab<\/strong><\/td>\n2022-23<\/strong><\/td>\n2023-24<\/strong><\/td>\n2024-25<\/strong><\/td>\n2025-26<\/strong><\/td>\n2026-27<\/strong><\/td>\n<\/tr>\n
PLI \u2013 A<\/td>\n4%<\/td>\n5%<\/td>\n5%<\/td>\n4%<\/td>\n3%<\/td>\n<\/tr>\n
PLI \u2013 B<\/td>\n8%<\/td>\n9%<\/td>\n10%<\/td>\n9%<\/td>\n7%<\/td>\n<\/tr>\n
PLI \u2013 C<\/td>\n12%<\/td>\n15%<\/td>\n15%<\/td>\n13%<\/td>\n11%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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*****<\/p>\n<\/div>\n<\/div>\n

<\/p>","protected":false},"excerpt":{"rendered":"

\u0915\u094d\u0937\u092e\u093e \u0915\u0930\u0947\u0902, \u092f\u0939 \u0938\u092e\u093e\u091a\u093e\u0930 \u0906\u092a\u0915\u0947 \u0905\u0928\u0941\u0930\u094b\u0927 \u0915\u0940 \u092d\u093e\u0937\u093e \u092e\u0947\u0902 \u0909\u092a\u0932\u092c\u094d\u0927 \u0928\u0939\u0940\u0902 \u0939\u0948\u0964 \u0915\u0943\u092a\u092f\u093e \u092f\u0939\u093e\u0901 \u0926\u0947\u0916\u0947\u0902\u0964 DELHI : 23 JUL 2021\u00a0 The Union Cabinet, chaired by the Prime Minister, Shri Narendra Modi approved the Production Linked Incentive (PLI) Scheme for specialty steel yesterday. https:\/\/youtu.be\/8YTK7STbooU FAQs in its regard may be seen below: 1. What is PLI […]<\/p>\n","protected":false},"author":12,"featured_media":59305,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[109,122],"tags":[9199],"class_list":["post-85879","post","type-post","status-publish","format-standard","has-post-thumbnail","category-national","category-news","tag-ministry-of-steel"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsnarad.com\/hi\/wp-json\/wp\/v2\/posts\/85879","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsnarad.com\/hi\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsnarad.com\/hi\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsnarad.com\/hi\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/newsnarad.com\/hi\/wp-json\/wp\/v2\/comments?post=85879"}],"version-history":[{"count":0,"href":"https:\/\/newsnarad.com\/hi\/wp-json\/wp\/v2\/posts\/85879\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsnarad.com\/hi\/wp-json\/wp\/v2\/media\/59305"}],"wp:attachment":[{"href":"https:\/\/newsnarad.com\/hi\/wp-json\/wp\/v2\/media?parent=85879"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsnarad.com\/hi\/wp-json\/wp\/v2\/categories?post=85879"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsnarad.com\/hi\/wp-json\/wp\/v2\/tags?post=85879"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}