Proposals formulated for 2nd edition of PLI, will take time: Steel secy

Steel Secretary Nagendra Nath Sinha on Thursday said the ministry has formulated proposals in consultation with the industry for second edition of the PLI scheme but its implementation would take "some time" as a few processes, including Cabinet nod, are pending.

The Union Cabinet in July 2021 approved the Production Linked Incentive (PLI) scheme to boost the production of specialty steel in India.

"We have formulated proposals for PLI 2 and need approval of the government for this. It may take some time. The proposal we have formulated has been done in consultation with all players of the industry and if we take it up, we expect a good response," Sinha said on the sidelines of an industry event in Greater Noida.

"I cannot commit any time frame for this right now because a lot of processes, like the proposal being sent to powered group of secretaries and then to the Cabinet for approval, are due and it will take some time," the Steel Secretary told reporters.

He was in Greater Noida for inauguration of the maiden India Stainless Steel Expo (ISSE) 2023.

Sinha also called for boosting the use of stainless steel in the country, suggesting steps like linking the industry with academia and improving research and development.

"The applications of stainless steel are dependent on the growth of the industry and investment being done in the infrastructure. You know that large scale investment is being done. This year also an investment of Rs 10 lakh crore is being done in infrastructure, which is 3.3 per cent of the GDP," he said.

"You would have also noticed applications (of stainless steel) in sectors like railways and metro trains where earlier mild steel was used but now stainless steel is used. This is also making an impact," he told reporters.

On the steel industry's demand for a reverse charge mechanism in GST, he said "that matter is still under the consideration of the GST Council."

On European Union's new carbon tax policy and impacts on Indian industry, he said the response to this question should come from the Commerce Ministry.

"We (Steel Ministry) are in dialogue with the industry. Proper information is being shared with the industry and we are taking their suggestions on it. But this matter ultimately is to be taken up by the Commerce Ministry, which recently put up an application also in the WTO (World Trade Organisation)," Sinha added.

Sinha said industry-academia linkages, research and development will have a major role in increasing applications of stainless steel and the government is supporting it while also enabling an ecosystem where our industry can flourish.

There is also a need to establish good links with users of stainless steel and demonstrate how its use can reduce their life cycle cost, is more sustainable and environment friendly.

An awareness about all these aspects is required among users by the industry to promote stainless steel and we are with them in this work, he added.