The Minister of Heavy Industries and Steel, HD Kumaraswamy, on Tuesday launched the third round of Production Linked Incentive (PLI) Scheme that is aimed at boosting ‘specialty steel’ production in India and curbing steel imports, especially from countries like China.
The third round of the PLI scheme, named ‘PLI 1.2’, for specialty steel will help attract investment in the sector, said the minister.
The PLI scheme for specialty steel was approved by the Union Cabinet in July 2021, with an overall outlay of ₹6,322 crore. It incentivises incremental production and investment in identified product categories to enhance high-value and advanced steel grades and reduce import dependence in critical sectors, such as defence, power, aerospace and infrastructure.
The scheme covers 22 product sub-categories, including super alloys, CRGO, alloy forgings, stainless steel (long and flat), titanium alloys, and coated steels, and aims to transform India into a global hub for the production of specialty steel.
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Under the first two rounds, the PLI scheme 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 ministry said.
Incentive rates range from 4 per cent to 15 per cent, applicable for five years starting 2025-26, with disbursal beginning in the next fiscal. The base year for pricing has also been updated to 2024-25 to better reflect current trends.
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