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The Ministry of Steel has rolled out the third phase of its Production Linked Incentive (PLI) scheme for speciality steel, named �PLI 1.2�, aiming to draw new investment and drive domestic production of high-value steel grades in sectors such as defence, aerospace, power and infrastructure. The original scheme, approved in mid-2021 with an outlay of INR 6,322 crore, has already seen committed investments of INR 43,874 crore in the first two rounds, with INR 22,973 crore invested and over 13,000 jobs created. The new phase expands the push to reduce import dependence.
The Ministry of Steel has launched a third phase of the PLI scheme for speciality steel, seeking to accelerate domestic manufacturing and cut reliance on imports. At a formal event in New Delhi, Steel Minister H.D. Kumaraswamy announced the roll-out of ?PLI 1.2? for speciality steel. The scheme aims to support production of advanced and high-value steel grades that find use in defence, power, aerospace and infrastructure. Advertisement
The PLI scheme for speciality steel was initially approved by the Union Cabinet in July 2021, with a total outlay of INR 6,322 crore. It was designed to transform India into a global hub for manufacturing advanced steel. Under the scheme, investment in identified product categories and incremental production are incentivised, with the goal of increasing domestic value addition and reducing imports.
In the first two rounds of the scheme, participating companies committed investment of INR 43,874 crore and have so far invested INR 22,973 crore, creating more than 13,000 jobs. The scheme covers 22 product sub-categories?including super alloys, CRGO steel, alloy forgings, stainless steel (long and flat), titanium alloys and coated steels.
For this third phase, incentive rates range from 4 per cent to 15 per cent, applicable over five years beginning in fiscal year 2025-26, with disbursement scheduled to start thereafter. The base year for pricing has been updated to 2024-25 to reflect current market trends.
This push is part of a broader strategy to bolster India?s domestic steel industry and climb up the value chain in steel production. The government is leaning on the speciality steel segment because India still imports a large portion of high-grade steel even while being one of the world?s largest steel producers. By offering incentives and targeting high-value categories, the scheme aims to encourage more domestic manufacturing capacity, technology upgrades and reduce dependency on imports in strategic sectors.
Source PTI
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