New Delhi: India’s ambition to become a global hub for high-value steel manufacturing received a major boost as the Ministry of Steel signed Memorandums of Understanding (MoUs) for 85 specialty steel projects under the Production-Linked Incentive (PLI) Scheme 1.2.
The projects involve 55 companies and represent a total investment commitment of ₹11,887 crore, marking the third round of the PLI Scheme for Specialty Steel.
8.7 Million Tonnes of New Specialty Steel Capacity Planned
Under this round, participating companies have committed to creating 8.7 million tonnes of downstream and alloy steel capacity, significantly strengthening India’s specialty steel ecosystem.
The projects span advanced steel grades used in:
- Strategic and defence applications
- Infrastructure and construction
- Automotive and engineering sectors
- Export-oriented manufacturing
The initiative aligns with the government’s Make in India vision by reducing import dependence and promoting domestic production of high-grade steel.
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PLI Scheme 1.2: Key Features and Incentives
Launched in November 2025, PLI Scheme 1.2 covers 22 product sub-categories across four major segments:
- Steel grades for strategic sectors
- Commercial grades – Category 1
- Commercial grades – Category 2
- Coated steel and wire products
The scheme offers incentives ranging from 4% to 15% for a period of five years, starting from FY 2025–26, with incentive payouts beginning in FY 2026–27.
Strong Track Record of Specialty Steel PLI Scheme
Since its launch in July 2021, the Specialty Steel PLI Scheme has seen robust industry participation:
PLI 1.0
- Investment committed: ₹27,106 crore
- Employment potential: 14,760 direct jobs
- Capacity addition: 7.9 million tonnes
PLI 1.1 (Launched January 2025)
- Expected investment: ~₹17,000 crore
- Employment generation: ~16,000 jobs
- Capacity addition: 6.4 million tonnes
So far, ₹236 crore has already been disbursed as incentives to participating companies.
Government Emphasises Make in India and Aatmanirbhar Bharat
Addressing the MoU signing ceremony, Union Minister for Steel and Heavy Industries H.D. Kumaraswamy said that PLI Scheme 1.2 is a decisive step toward building a resilient and globally competitive specialty steel ecosystem.
He highlighted that the scheme advances the twin national priorities of Make in India and Aatmanirbhar Bharat by:
- Encouraging domestic capacity creation in advanced steel
- Conserving foreign exchange
- Addressing structural gaps in specialty steel production
- Positioning India as a reliable global supplier
Outlook: India’s Specialty Steel Sector Gains Momentum
With fresh investments and capacity commitments under PLI Scheme 1.2, India’s specialty steel industry is entering a phase of accelerated expansion. The focus on value-added steel, advanced alloys, and downstream manufacturing is expected to play a critical role in long-term industrial growth, job creation, and export competitiveness.
