The government has already announced a production linked incentive (PLI) scheme and it has also announced Rs 6,322 crore for a speciality steel production linked incentive scheme.

According to sources, the cabinet is likely to meet on Thursday, July 22, to consider a speciality steel PLI scheme.

People in the know said that the Steel Ministry has broadly identified five categories and 20 sub-categories; the eligibility criteria will include Memorandum of Understanding (MoU), joint ventures, and will also give priority to 20 percent value addition by third parties.

It is also believed that priority will be given to those companies that front-load investment and achieve annual incremental production. The incentives are likely to be in the range of 4-15 percent, starting from FY23 till FY28. The base year for the PLI scheme will be FY20.

There will be a capping of incentive and it is likely to be Rs 200 crore. Therefore, at present, there’s a need to wait and watch as to how many big boys of the steel sector will come and invest.

Watch the accompanying video of CNBC-TV18’s Anshu Sharma for more details.

(Edited by : Dipika Ghosh)