Union Minister HD Kumaraswamy Launches 3rd Round of PLI Scheme for Speciality Steel

The Union Steel and Heavy Industries Minister, H.D. Kumaraswamy, has launched the third round of the Production Linked Incentive (PLI 1.2) Scheme for Speciality Steel. 

The scheme, approved in 2021 under the Atmanirbhar Bharat mission, aims to make India a global manufacturing hub for high-value steel products by encouraging domestic production and reducing import dependency.

Key Development:  Third Round Opens for Applications

The Ministry has opened the application window for companies to apply through an online portal for 30 days from launch. The scheme covers 22 sub-categories of speciality steel across five major product clusters, including super alloys, CRGO, stainless steel (long and flat), titanium alloys and coated steels. 

Eligible applicants must be India-registered companies engaged in the end-to-end manufacturing of the notified products. Incentives will range from 4% to 15% on incremental sales, with benefits applicable for up to five years starting FY 2025–26, and disbursal beginning FY 2026–27. The pricing base year has been updated to FY 2024–25, replacing the earlier FY 2019–20 reference.

Statements/Insights: Investments and Progress So Far

According to the Ministry, the PLI scheme has already attracted ₹43,874 crore in committed investment. As of September 2025, participating companies from the first two rounds have invested ₹22,973 crore, generated 13,284 jobs, and are expected to deliver 14.3 million tonnes of speciality steel. 

In total, the scheme targets 30,760 direct jobs and aims to scale India’s capacity in advanced steel that is used in defence, infrastructure, aerospace and high-technology industries.

Impact

The third round is expected to accelerate India’s capability in high-end steel manufacturing, reduce reliance on imports, and position the country as a credible supplier in global value chains. The scheme is seen as a key driver to push India towards self-reliance in critical steel categories used in strategic sectors.

Read More: India’s Steel Industry Hit by Influx of Cheap Imports, Mills Cut Output!

Conclusion

With the launch of PLI 1.2, the Ministry now aims to catalyse fresh investments and strengthen India’s manufacturing edge in speciality steel.

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