Govt launches 3rd round of PLI scheme for speciality steel to attract investment

The government launched the third round of the Production Linked Incentive (PLI) scheme for speciality steel to attract fresh investments and boost domestic manufacturing. The Rs 6,322 crore scheme aims to make India a global hub for advanced steel production

New Delhi: Steel Minister HD Kumaraswamy on Tuesday launched the third round of Production Linked Incentive (PLI) Scheme for speciality steel to attract investment in the sector, as part of the government’s aim to boost domestic output and reduce imports.

The minister launched the third round of the PLI scheme named ‘PLI 1.2’ for speciality steel at a function held. The PLI scheme for speciality steel was approved by the Union Cabinet in July 2021 with an overall outlay of Rs 6,322 crore.

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It aims to transform India into a global hub for the production of high-value and advanced steel grades. The scheme incentivises 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.

Under the first two rounds, the PLI scheme has so far attracted a committed investment of Rs 43,874 crore, with Rs 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 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.