Third Round (PLI 1.2) of Production Linked Incentive Scheme for
Specialty Steel Launched
The
Ministry of Steel
is set to launch the Third
Round (PLI 1.2) of the Production
Linked Incentive (PLI) Scheme for Specialty Steel, a key
initiative under the Government’s Atmanirbhar Bharat vision. The
launch will be presided over by Union
Minister for Steel and Heavy Industries, H.D. Kumaraswamy, in
the presence of senior officials and industry stakeholders.
Approved
by the Union Cabinet in
July 2021 with an outlay of ₹6,322 crore, the scheme aims to
transform India into a global
hub for high-value, advanced steel production. It incentivizes
incremental production and investment across identified categories, enhancing value addition and reducing import
dependence in critical sectors such as defence, power, aerospace, and
infrastructure.
To
date, the PLI Scheme has attracted ₹43,874
crore in committed investment, of which ₹22,973 crore has already been
realized, creating over
13,000 jobs in the first two rounds.
The
scheme encompasses 22
product sub-categories, including super alloys, CRGO steel, alloy
forgings, stainless steel (long and flat), titanium alloys, and coated steels.
Incentive rates will range from 4%
to 15% for five
years starting FY 2025–26, with disbursement beginning in FY 2026–27. The base year for pricing
has also been updated to
FY 2024–25 to align with current market conditions.
The
Ministry of Steel, Government of India, is set to launch the Third Round (PLI
1.2) of the Production Linked Incentive (PLI) Scheme for Specialty Steel, one
of the key initiatives under the Government’s Atmanirbhar
Bharat vision. The launch will be presided over by the Hon’ble Union Minister
for Steel and Heavy Industries, H.D. Kumaraswamy, in the presence of senior
officials, and other stakeholders from the sector.
The
PLI Scheme for Specialty Steel, approved by the Union Cabinet in July 2021 with
an overall outlay of ₹6,322 crore, seeks to transform India into a global
hub for production of high-value and advanced steel grades. The scheme
incentivizes incremental production and investment in identified product
categories, thereby enhancing value addition within the country and reducing
import dependence in critical sectors such as defence, power, aerospace and
infrastructure.
So
far, the PLI Scheme has attracted a committed investment of ₹43,874
crore, with ₹22,973 crore already invested and over 13,000 jobs created
under the first two rounds.
The
scheme covers 22 product sub-categories including super alloys, CRGO, alloy forgings, stainless steel (long and flat),
titanium alloys, and coated steels. Incentive rates range from 4% to 15%,
applicable for five years starting FY 2025–26, with disbursal beginning in FY
2026–27. The base year for pricing has also been updated to FY 2024–25 to
better reflect current trends.