The scheme has the potential of generating employment for about 5.25 lakh people — of which 68,000 will be direct and the rest will be indirect jobs.
In a briefing post the Cabinet meeting — that was chaired by Prime Minister Narendra Modi — information and broadcasting minister Anurag Thakur said the move is aimed at boosting domestic manufacturing and exports from the sector.
Under this, incentives worth Rs 6,322 crore will be provided over a period of five years from 2023-24 ro 2027-28 for local manufacturing of the product.
The scheme is expected to bring in investment of approximately Rs 40,000 crore and capacity addition of 25 MT.
In addition, it also proposes to incentivise eligible manufacturers by paying between 4 per cent to 12 per cent incentive on incremental production.
“Any company registered in India, engaged in manufacturing of the identified ‘specialty steel’ grades will be eligible to participate in the scheme. It will however, have to ensure that the steel used for making specialty steel is melted and poured in the country, thereby ensuring end-to-end manufacturing keeping in view the Prime Minister’s, Atmanirbhar Bharat,” the Centre said in an official release.
The scheme will cover coated/plated steel products; high strength/wear resistant steel; specialty rails; alloy steel products, steel wires and electrical steel.