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Govt mulling inclusion of refractories in PLI 2.0 for steel sector Steel
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Govt mulling inclusion of refractories in PLI 2.0 for steel sector

India Blooms News Service | @indiablooms | 07 Jun 2023, 02:07 am

The Indian government is considering the inclusion of refractories in the upcoming Production Linked Incentive Scheme 2.0 for the steel sector with the aim to increase the country's steel production capacity to 300 million tonnes by 2030, media reports said.

Refractories play a crucial role in steel manufacturing, and India currently relies on imported raw materials for this sector.

The Ministry of Steel is actively engaged in discussions with the refractory industry to formulate an incentive policy that will stimulate domestic production and reduce the nation's dependence on imports, particularly from China, according to an official of the steel ministry.

In the initial Production Linked Incentive (PLI) scheme, the government sanctioned Rs 6,322 crore to boost the growth of the steel sector. The objective was to attract approximately Rs 30,000 crore in investments and create an additional capacity of around 25 million tonnes of specialty steel over the next five years.

Refractories are indispensable materials for the steel industry as they are used to line the internal furnaces used in the production of iron and steel.

Despite comprising only a small percentage (2-3%) of the overall cost of steel production, refractories play a crucial role.

Without these materials, it would be impossible to manufacture even a single tonne of steel.

The component’s importance lies in its ability to withstand high temperatures and harsh conditions within the furnaces, ensuring efficient and reliable steel production processes.