Ministry of Steel to Launch 3rd Round of PLI Scheme for Speciality Steel

The Government of India is set to roll out the third phase (PLI 1.2) of the Production Linked Incentive Scheme for Speciality Steel, a flagship initiative under the Atmanirbhar Bharat vision. 

The launch will be led by Union Minister for Steel and Heavy Industries, Shri H.D. Kumaraswamy, alongside senior officials and key stakeholders from the sector.

Incentivising Value-Added Steel Manufacturing

Originally approved by the Union Cabinet in July 2021 with an outlay of ₹6,322 crore, the PLI Scheme for Speciality Steel aims to make India a global manufacturing hub for advanced and high-grade steel products. 

The initiative provides incentives for incremental investment and domestic value addition across 22 product sub-categories, including super alloys, CRGO, alloy forgings, coated steels, titanium alloys, and stainless steel (long and flat).

Incentive rates under the scheme range between 4% and 15% for a period of 5 years starting FY 2025–26, with disbursals scheduled to begin in FY 2026–27. The base pricing year has been updated to FY 2024–25 to align with current market trends and input costs.

Strong Investment and Employment Impact

According to PIB data, the scheme has already attracted ₹43,874 crore in committed investments, of which ₹22,973 crore has been deployed. The initiative has also generated over 13,000 direct jobs across participating companies during its first 2 rounds.

The third round aims to deepen domestic manufacturing capabilities, cut import reliance in critical sectors such as defence, aerospace, power and infrastructure, and enhance India’s competitiveness in the global steel value chain.

Read More: Govt Unveils Major Changes to Textile PLI Scheme to Boost Investments!

Conclusion

With PLI 1.2, the government seeks to strengthen India’s position as a producer of high-value steel, promote self-reliance, and support industrial growth through technological advancement and job creation in one of the country’s core manufacturing sectors.

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