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The Government of India on Sunday launched the Production Linked Incentive (PLI) Scheme 1.2 for Specialty Steel, aimed at strengthening high-value manufacturing and reducing import dependence in critical steel grades. The launch event, held at Vigyan Bhawan in New Delhi, witnessed the signing of Memoranda of Understanding (MoUs) with industry participants.
Union Minister for Steel and Heavy Industries H.D. Kumaraswamy described PLI 1.2 as a decisive step toward building a robust and globally competitive specialty steel ecosystem. He said the initiative aligns with Prime Minister Narendra Modi’s vision of advancing Make in India and Aatmanirbhar Bharat through domestic capacity creation in advanced steel products.
Under the scheme, 85 MoUs have been signed with 55 companies, representing committed investments of ₹11,887 crore. These projects are expected to add 8.7 million tonnes of specialty steel capacity by FY 2031. The capacity expansion will cover electrical steel, alloy and stainless steels, coated products, and grades required for strategic sectors.
The third phase of the PLI scheme has been introduced in response to rising demand from sectors such as automobiles, railways, defence, electrical equipment, and aerospace. The scheme offers incentives ranging from 4% to 15% over five years to promote investment, technology upgradation, and value addition.
Kumaraswamy stated that PLI 1.2 will address structural gaps by encouraging domestic production, conserving foreign exchange, and positioning India as a reliable global supplier of advanced steel. He urged participating companies to implement projects within scheduled timelines and maximize the use of indigenous technologies and inputs.
The government expressed confidence that PLI 1.2 will play a key role in India’s journey to becoming a global hub for specialty steel manufacturing.
