With a budgetary outlay of Rs6322cr, the scheme is expected to bring in an investment of approximately Rs40,000cr and a capacity addition of 25 MT for specialty steel. The scheme will give employment to about 5,25,000 people of which 68,000 will be direct employment.
Reacting to this news, shares of SAIL, MOIL, Vedanta, NMDC, Tata Steel, Jindal Steel and JSW steel are trading higher on the Nifty Metal index.
The Nifty Metal was trading slightly higher at 5,366.50. The index opened at 5,384.85 and hit a high at 5,408.55.
The metal stocks were trading with gains, with the S&P BSE Metal index rising 108.12 points or 0.56% at 19435.65 in the early morning trade.
Among the components of the S&P BSE Metal index, Steel Authority of India Ltd (up 2.61%), Hindustan Zinc Ltd (up 1.47%), Tata Steel Ltd (up 0.91%), Vedanta Ltd (up 0.74%), Jindal Steel & Power Ltd (up 0.69%), were the top gainers.
Among the other gainers were NMDC Ltd (up 0.54%), JSW Steel Ltd (up 0.25%), Hindalco Industries Ltd (up 0.13%), and APL Apollo Tubes Ltd (up 0.06%).
From these product categories, the Centre expects that after completion of the Scheme India will start manufacturing products like API grade pipes, Head Hardened Rails, electrical steel (needed in transformers and electrical appliances) which are currently manufactured in very limited quantity or not manufactured at all.
There are 3 slabs of PLI incentives, the lowest being 4 % and highest being 12% which has been provided for electrical steel (CRGO). The PLI Scheme for specialty Scheme will ensure that the basic steel used is ‘melted and poured’ within the country which means that raw material (finished steel) used for making specialty steel will be made in India only, thereby ensuring that Scheme promotes end to end manufacturing within the country.
Soma Mondal, Chairman, SAIL has commented, “I thank our Hon’ble Prime Minister, Narendra Modi ji for this path-breaking scheme for the steel industry. The steel industry has climbed higher on the charts of the world steel production in the recent years and this scheme shall provide additional impetus to the sector to reach greater heights in the future. This significant decision to introduce PLI for the specialty steel will have far reaching positive impacts on the domestic steel industry in general and SAIL in specific. We shall consider the scheme while deciding our next CAPEX cycle and product-mix in the coming times.”
As per media reports, China on Friday launched an anti-dumping investigation into grain oriented flat-rolled electrical steel imported from Japan, South Korea and the European Union following the expiry of tariffs in place for the last five years.