PLI Scheme
1.2 for Specialty Steel to Boost High-Value Manufacturing Launched
Ø PLI
1.2 Aligns with PM Modi’s Vision of Global Manufacturing Leadership
·
Scheme launched:
The Government of India launched Production
Linked Incentive (PLI) Scheme 1.2 for Specialty Steel at Vigyan Bhawan, New Delhi,
marking a major step to strengthen advanced steel manufacturing.
·
Industry participation:
The launch included the signing of MoUs
with industry players, signalling strong private sector confidence
in India’s long-term growth.
·
Policy vision:
Union Minister H. D. Kumaraswamy
described PLI 1.2 as a key move to build a resilient, globally competitive specialty steel ecosystem,
aligned with Make in India
and Aatmanirbhar Bharat.
·
Investment commitments:
o 85 MoUs signed with 55 companies
o Committed investment of
₹11,887 crore
·
Capacity expansion:
Projects under PLI 1.2 are expected to add 8.7 million tonnes of specialty steel capacity
by FY 2031.
·
Focus segments:
Capacity creation will target high-end
steel grades, including electrical steel, alloy and stainless steel,
coated products, and steel for strategic applications.
·
Response to industry demand:
The third round
of the PLI Scheme was launched due to strong industry response and the need for
sustained expansion in specialty steel.
·
Strategic sector support:
The scheme supports downstream sectors such as automobiles, railways, defence, electrical equipment, and aerospace.
·
Incentive structure:
Incentives range from 4% to
15% over a five-year
period, encouraging investment, technology upgradation, and value
addition.
·
Global value chain integration:
PLI 1.2 aims to integrate Indian manufacturers into global value chains while
reducing import dependence
and conserving foreign exchange.
·
Track record of earlier rounds:
o PLI 1.0 and 1.1 saw committed
investments of ₹43,874
crore
o These rounds delivered tangible
capacity creation and employment
generation
·
Implementation emphasis:
The Minister urged companies to execute
projects on time, maximise indigenous technologies and inputs, and strengthen
the domestic steel value chain.
Overall takeaway:
PLI Scheme 1.2 builds on earlier successes to accelerate investment, expand capacity,
and position India as a global
hub for specialty steel manufacturing, reinforcing both economic
resilience and strategic self-reliance.
The
Government of India launched Production Linked Incentive (PLI) Scheme 1.2 for Specialty
Steel, marking a significant milestone in the country’s efforts to strengthen high-value
manufacturing and reduce import dependence in critical steel grades. The launch,
held at Vigyan Bhawan in New Delhi, also witnessed the signing of Memoranda of Understanding
(MoUs) with participating industry players, reflecting robust industry confidence
in India’s long-term growth prospects.
Addressing
the gathering after the MoU signing ceremony, Union Minister for Steel and Heavy
Industries H. D. Kumaraswamy underscored that PLI 1.2 is a decisive step towards
building a resilient and globally competitive specialty steel ecosystem, fully aligned
with the vision of Hon’ble Prime Minister Shri Narendra Modi. The Union Minister
noted that the scheme advances the twin national priorities of Make in India and
Aatmanirbhar Bharat by encouraging domestic capacity creation in advanced and strategic
steel products.
Under
PLI Scheme 1.2, 85 MoUs have been signed with 55 companies, committing investments
of ₹11,887 crore. These projects are expected to add 8.7 million tonnes of
specialty steel capacity by FY 2031, significantly expanding India’s capabilities
in high-end steel segments such as electrical steel, alloy and stainless steels,
coated products, and grades required for strategic sectors.
The
third round of the PLI Scheme has been launched in response to strong industry demand
and the need for sustained capacity expansion in specialty steel, which is essential
for sectors including automobiles, railways, defence, electrical equipment, and
aerospace. With incentive rates ranging from 4% to 15% over a five-year period,
the scheme is designed to promote investment, technology upgradation, and value
addition while integrating Indian manufacturers into global value chains.
Speaking
on the broader impact of the scheme, the Minister highlighted that “PLI 1.2 seeks
to address structural gap by incentivising domestic production, conserving foreign
exchange, and positioning India as a reliable global supplier of advanced steel”.
Union
Minister added in that “the achievements under earlier rounds of the PLI Scheme
further reinforce the policy’s effectiveness. Across PLI 1.0 and 1.1, committed
investments of ₹43,874 crore have already translated into substantial on-ground
progress, including significant capacity creation and employment generation. PLI
1.2 builds on this momentum, deepening the domestic steel ecosystem and strengthening
the entire value chain”.
Concluding
his address, Union Minister H.D. Kumaraswamy called upon participating companies
to implement their projects in a time-bound manner and maximise the use of indigenous
technologies and inputs. He reiterated the Government’s commitment to facilitation
and timely resolution of operational issues, emphasising that the success of PLI
1.2 will play a pivotal role in India’s journey towards becoming a global hub for
specialty steel manufacturing.