The Ministry of Steel and Heavy Industries has launched the third round of the Production Linked Incentive (PLI) Scheme for Specialty Steel, known as PLI 1.2, to attract new investments in advanced steel categories and expand high-grade steel capacity in India. The scheme, launched on 4 November 2025 in New Delhi, is part of the government’s ongoing effort to strengthen domestic manufacturing and integrate India into global steel value chains.
According to an official statement by the Ministry of Steel, the PLI scheme has so far attracted total investment commitments worth INR 438.74 billion, generated 30,760 direct jobs, and is expected to create 14.3 million tonnes of specialty steel capacity. As of September 2025, participating companies from the first two rounds have already invested INR 229.73 billion and created 13,284 jobs.
The PLI Scheme for Specialty Steel, approved by the Union Cabinet in July 2021 with a total outlay of INR 63.22 billion, incentivises domestic production of high-value steels used in defence, aerospace, automotive, and infrastructure sectors. Under PLI 1.2, eligible companies registered in India and engaged in end-to-end manufacturing of notified steel products can apply for incentives ranging from four to fifteen percent of incremental sales, depending on the product category and year of production. Incentives will be disbursed over a maximum period of five years, starting from financial year (FY) 2026–27.
Union Minister for Steel and Heavy Industries H.D. Kumaraswamy said the third round is intended to draw new investments into advanced and emerging segments such as super alloys, cold-rolled grain-oriented (CRGO) steel, stainless steel long and flat products, titanium alloys, and coated steels. “PLI 1.2 is designed to accelerate India’s journey toward becoming a global hub for high-grade steel production,” said Kumaraswamy.
He added that the new phase of the scheme would provide opportunities for small and medium enterprises (MSMEs) and existing producers to expand or upgrade their facilities. “The response to the first two rounds has been highly encouraging. The success demonstrates the strength of India’s reform-oriented and industry-driven policy framework,” Kumaraswamy stated.
The scheme’s application window will remain open for 30 days from the launch date through the online portal of Mecon Limited, which is managing the application process. The base year for price calculations has been revised from FY 2019–20 to FY 2024–25 to align with current market conditions.
The Ministry noted that the PLI initiative is expected to enhance India’s competitiveness in the global steel market through export-led growth, innovation, and sustainable production practices. It also supports broader national objectives, including the “Viksit Bharat 2047” vision and the country’s Net Zero 2070 target.
The Ministry of Steel is responsible for policy formulation and coordination of all aspects of the steel industry in India, including raw material availability, infrastructure development, and support for advanced manufacturing initiatives.
