The Indian government is working on the 2nd phase of the Steel The output Linked Incentive (PLI) scheme, which will be implemented in 2024. According to Shree Metal Prices, Junior Minister of Steel Faggan Singh Kulaste made this claim.
The nation is expect to have produce 94 million tonnes of steel between April and November of the 2023–2024 fiscal year, an increase of 14.5% over the same period in the previous fiscal year. As a result, the government is working to offer steel companies more incentives in an effort to boost capacity even further.
Taking into consideration the first phase’s experience, industry representatives are currently debating the 2nd phase of the scheme.
Steel companies that take part in the PLI programme are eligible for tax breaks from the government based on their increased capacity.
Some estimates place the amount of money remaining from the government-created fund. Which has a total annual value of $761 million and was intended to implement the first phase of the PLI program, at $481 million.
67 steel companies agreed to take part in the programme and invest $3.61 billion in the development of new steel capacities by signing a contract with the government as part of the first phase of the initiative.
Government Strategies for Steel Industry Growt
Furthermore, the government will guarantee the availability of raw materials for the steel industry, encourage the use of scrap, and insist on the application of artificial intelligence and cutting-edge technologies in the steel industry to boost output, according to Kulaste, News Bytes writes.
In addition, he projects that infrastructure projects in India will result in a notable rise in steel output and demand by 2024.
In order to fulfil the expanding demands of various industries. The official also urged steel producers, including state-owned SAIL and RINL, to broaden their product offerings.
Simultaneously, the Indian Steel Association (ISA) expressed apprehension regarding the swift expansion of imports and elevated costs of raw materials impacting the domestic market. And they hoped that the authorities would take prompt action.
Australia and India will be negotiating a steady supply of coking coal, as the Shree Metal Prices previously reported. The Indian government is attempting to assist its steel mills in this way. As they are having difficulties due to a decrease in supply and an increase in the cost of this raw material.