Steel Ministry Inks MoUs for 85 Speciality Steel Projects with ₹11,887 Crore Outlay Under PLI 1.2

The Ministry of Steel has signed Memoranda of Understanding (MoU) with 55 companies covering 85 projects under the third round of the Production-Linked Incentive scheme for specialty steel.  

The projects involve planned investments of ₹11,887 crore and are expected to add about 8.7 million tonnes of capacity. 

Steel Ministry Signs MoUs in Delhi 

The agreements were signed at Vigyan Bhawan in New Delhi in the presence of Union Minister for Heavy Industries and Steel H D Kumaraswamy and Minister of State Bhupathi Raju Srinivasa Varma. The signing is the operational start of PLI Scheme 1.2, announced in November last year. 

Focus On Segments with Import Dependence 

The new round targets specialty steel grades where domestic supply remains limited. These include steel used in strategic sectors, electrical applications, coated products and wire segments. 

PLI 1.2 covers 22 product sub-categories across four segments. Incentives under the scheme range from 4% to 15% and will be available for five years starting from the financial year 2025-26. 

Adjustments Based on Earlier Experience 

The scheme design has been modified after reviewing the first two rounds. Investment thresholds have been lowered, and the requirement for mandatory annual production targets has been removed. 

Incentive payments will now be linked to actual incremental production. The base year has also been shifted to FY25 to show current market conditions. The ministry said it would continue to assist companies with approvals and coordination with state authorities. 

Investments Under Previous Rounds 

Under PLI 1.0 and 1.1, companies had committed investments of ₹43,874 crore. According to the ministry, these rounds have resulted in capacity additions and employment across parts of the steel value chain. 

Read More: Steel PSUs Plan Sharp Rise in Capital Spending from FY27 on Capacity and Transition Needs! 

Conclusion 

The third round of the scheme focuses on selected specialty steel segments and introduces changes to investment and production conditions. Project execution and output levels will determine the results of the programme. 

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