Ministry of Steel signs MoU with selected companies under PLI scheme

Tags: Economy/Finance National News

The Ministry of Steel on 17 March signed MoUs with selected companies under the Production-linked Incentive (PLI) scheme for specialty steel in New Delhi.

An overview of the news

• India has become a growth center for the future of the steel industry. India will play an important role in this sector in the next two decades.

• A total of 57 MoUs were signed with 27 companies during the event.

• The production linked incentive scheme aims to boost domestic manufacturing and cut down on import bills by encouraging local companies to set up or expand existing manufacturing units.

Production Linked Incentive (PLI) scheme 

• It is an initiative that provides incentives to domestic industries to promote production at the local level.

• Through this scheme, the government aims to incentivize companies to increase the sales of manufactured products in domestic units.

• The objective of the scheme is to make domestic manufacturing globally competitive and to become a global champion in manufacturing.

• The government has launched this scheme with an outlay of around Rs 2 lakh crore for 14 sectors including Automobiles and Auto Components, White Goods, Pharma, Textiles, Advanced Chemistry Cell and Specialty Steel.