NEW DELHI: Union Minister for Steel and Heavy Industries H.D. Kumaraswamy on Monday launched the third round of the Production Linked Incentive (PLI) Scheme for Specialty Steel (PLI 1.2) at Udyog Bhawan, New Delhi. The new phase seeks to boost investment in advanced steel manufacturing, expand India’s high-end production capacity, and strengthen the country’s position as a global hub for specialty steel.
According to the Ministry of Steel, the PLI scheme has so far attracted a total committed investment of ₹43,874 crore, created over 13,000 jobs, and led to an estimated 14.3 million tonnes of specialty steel production under the first two rounds. As of September 2025, participating companies have already invested ₹22,973 crore and generated 13,284 direct employment opportunities.
Expanding India’s Specialty Steel Capabilities
Approved by the Union Cabinet in July 2021, the PLI Scheme for Specialty Steel is one of the key initiatives under the government’s Atmanirbhar Bharat vision. With an overall outlay of ₹6,322 crore, the scheme incentivizes incremental production and domestic value addition in high-end steel grades used in defence, aerospace, power, infrastructure, and automotive sectors.
The third round (PLI 1.2) will focus on attracting new investment in advanced and emerging steel product categories such as super alloys, cold rolled grain oriented (CRGO) steel, stainless steel long and flat products, titanium alloys, coated steels, and alloy forgings.
Officials said the round aims to encourage both public and private manufacturers to scale up production, reduce import dependency, and enhance India’s share in the global value chain of specialty steel.
Key Highlights of the Third Round
Under the new phase, the application window will remain open for 30 days through the official portal (https://plimos.mecon.co.in). Companies registered in India and engaged in end-to-end manufacturing of notified steel products are eligible to apply.
The scheme covers 22 product sub-categories grouped into five broad target segments, including strategic and commercial grades of steel. The incentive rates will range from 4% to 15% of incremental sales, depending on the product type and year of production.
The incentive period will extend for a maximum of five years, starting FY 2025–26, with disbursal to begin from FY 2026–27. In a key update, the base year for price calculations has been revised from 2019–20 to 2024–25, aligning the scheme with current market realities and cost structures.
Government Push for Self-Reliance in Steel
Speaking at the launch, Minister Kumaraswamy emphasized that the PLI scheme represents a crucial step toward making India self-reliant in high-grade steel production. “With growing infrastructure, energy, and defence requirements, specialty steel is central to India’s industrial growth. The third round of the PLI scheme will help us move closer to our goal of an Atmanirbhar steel sector,” he said.
Senior officials from the Ministry of Steel and representatives from the steel industry attended the launch event, which marked a key milestone in India’s industrial policy reforms.
The Road Ahead
The government expects the third phase to generate significant new employment and push India’s specialty steel capacity expansion over the next five years. The Ministry highlighted that increased domestic production of advanced steel grades will also help reduce imports, particularly in critical sectors that currently rely on foreign suppliers.
Industry experts view the PLI initiative as a strong policy lever for deepening India’s participation in global steel manufacturing. With cumulative investments already surpassing ₹40,000 crore, the PLI scheme has become one of the largest industrial incentives under the Atmanirbhar Bharat framework.
As applications open for the third round, officials expect renewed interest from both existing and new players in the steel sector seeking to capitalize on India’s growing demand for high-value, technology-intensive steel products.
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