New Delhi, Jul 22 (PTI) The steel industry on Thursday welcomed the Rs 6,322-crore PLI scheme approved by the government to boost domestic production of specialty steel and its export. The Union Cabinet chaired by Prime Minister Narendra Modi on Thursday approved the production linked incentive (PLI) scheme which will attract an investment of about Rs 40,000 crore, create over 5.25 lakh jobs and lead to a capacity addition of 25 million tonnes (MT). The scheme also aims to boost manufacturing of specialty steel in India and reduce its imports. Tata Steel CEO and MD T V Narendran said, "We welcome the PLI scheme for specialty steel announced by the government. Tata Steel has been a pioneer in import substitution, especially in the auto sector. As we continue on our journey of growth, the PLI scheme will provide an added advantage to our future plans where value-added products will be a major focus." Jindal Steel and Power Ltd (JSPL) Managing Director V R Sharma said it is a step in the right direction to make India Aatmanirbhar in specialty steel which is being imported from other countries. Sharma said bankers will now have a positive outlook towards the steel industry as the PLI announcement has given a clear message that the steel sector has support of the government. JSW Steel Joint Managing Director and Group CFO Seshagiri Rao said the scheme will give an edge to setting up of domestic manufacturing facilities for speciality steel in the country and give fillip to investment in research and development (R&D) and technology in the sector.

"Also, the stipulation in the scheme that the steel used for making specialty steel should be melted and poured in the country” will strengthen end-to-end manufacturing within the country, Rao added.

Chandrajit Banerjee, Director General of industry body CII, said "the scheme for specialty steel announced today shows the government's commitment towards Aatmanirbhar Bharat.

"This is another visionary initiative for a sector where India has a global competitive edge and today's announcement of incentivising the speciality steel segment will complete the journey for strengthening the entire value-chain," he added. SAIL Chairman Soma Mondal said the significant decision to introduce the PLI scheme for the specialty steel will have 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. The PLI scheme for specialty steels will encourage new technological interventions and innovations in the domestic steel sector. SAIL is expected to capitalize on the opportunity and contribute to the Government's efforts in making a strong and self-reliant India," she said. D K Mohanty, CMD (additional charge), RINL, said, "The PLI scheme approved by the Union Cabinet is a welcome step toward making India a truly 'Aatmanirbhar Bharat' as it will have multiple cascading positive effects. It will not only promote production of quality specialty steel for import substitution for the end users but also provide opportunity for the producers to export finished products for long-term sustainability."

Dilip Oommen, President, Indian Steel Association and CEO of ArcelorMittal Nippon Steel India (AMNS), said the industry applauds the Union Cabinet's decision to approve the PLI scheme for specialty steel.

The steel industry has demonstrated tremendous resilience in these challenging times, he added. "This decision will go a long way in enabling growth, not just for the steel sector, but overall infrastructure development."

"It will help bring the country at par with the best in the industry globally. This milestone also reinforces the government's vision of building and growing an 'Aatmanirbhar Bharat' and we are confident that this move will truly provide further impetus to India's socio-economic growth," he said.

Dhruv Goel, CEO of research firm SteelMint Group, said, "The government has taken a big step towards enhancing India's manufacturing capabilities and the idea of cutting down on steel imports. This scheme will certainly help Indian steel companies to explore production of special steel which is largely imported at the moment. We can also expect global steel companies, explore possibilities of setting up special alloy steel plants in India. This is a well thought out move by the India government."

Jayanta Roy, senior vice-president and group head (corporate sector ratings), ICRA, said the PLI scheme for steel would provide incentive for domestic production of special steel grades, for which India remains dependent on Japanese and Korean suppliers even today.

This would accelerate the indigenisation of technology intensive niche steel products and take India a step closer to being truly Aatmanirbhar in the steel sector going forward, he said.

(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)