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Alloy steel producers have approached the Steel Ministry for extending the ambit of the PLI (productivity-linked incentive) 2.0 scheme to include categories like super-alloys and titanium alloys, among others, which log an annual import bill exceeding ₹5,000 crore. The steel makers also want a higher quota for export to Europe with a parity in tax structures.
Also read: Steel exports surge in February, but India still net importer
Alloying elements such as molybdenum, manganese, nickel, chromium, vanadium, silicon, and boron are added in the range of 1-50 per cent to increase the strength, hardness, wear resistance, and toughness of steel.
In a letter to the Steel Secretary, the Alloy Steel Producers Association of India sought a relaxation in investment-linked norms and production capacities. It said that “.....flexibility should be given to the applicant company to decide on the investment in any upstream or downstream facility as per their requirement”.
The manufacturers have requested that all the categories of alloy long steel included in PLI 1.0 should also remain under PLI 2.0, which is currently under review.
“Large number of automotive, speciality alloy grades and defence-related grades have been left out of the PLI..... which must be included in PLI 2.0,” the letter stated. It called for the inclusion of super-alloys, remelted steel grades, titanium alloys, speciality high alloy steels — used across sectors like nuclear, defence, automotive, aerospace, oil and natural gas, among others, and imported in huge quantities.
For instance, annual import of super-alloys in the last three years averaged ₹1,374 crore, while for titanium alloys it was ₹618 crore, and for speciality steel around ₹3,500 crore.
The manufacturers also asked for PLI rate rationalisation baseline price revision.
Level playing field
The steel mills wanted a level playing field across export markets.
In a separate letter to Union Steel Minister Jyotiraditya Scindia, the mills pointed to the “discriminatory” import duty in countries like Brazil and Mercosuer (the trade block including Argentina, Brazil, Paraguay and Uruguay) of 12-18 per cent.
They also pointed out that export quotas remained lower than expected, “and get exhausted in the first day of the quarter”. Any export beyond the quota attracts punitive action.
They also requested the Commerce Ministry to hand-hold them ahead of the upcoming Carbon Border Adjustment Mechanism (CBAM) and its related challenges.
Also read: India remains net steel importer amidst rising shipments, imports outpace exports
“.....to have the current standards revised to include grades being imported into the country..... issuance of BIS standards for defence grade steel currently being imported but are within the range of domestic producers,” it further wrote.
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