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Ministry of Steel Signs MoUs for 85 Specialty Steel Projects
Steel

Ministry of Steel Signs MoUs for 85 Specialty Steel Projects

The Ministry of Steel signed Memoranda of Understanding for 85 projects by 55 companies under the Production-Linked Incentive Scheme 1.2 for specialty steel at Vigyan Bhawan in New Delhi on nine February 2026. Participating firms committed Rs 118,870 million and a committed capacity of eight point seven million tonnes in downstream steel and alloy making. The agreements form part of the government effort to deepen manufacturing capability and to promote Make in India objectives.

The minister explained that the scheme is a key reform intended to strengthen domestic manufacturing, enhance global competitiveness, reduce import dependence and conserve foreign exchange while positioning India as a reliable supplier of high-value steel. The announcement indicated that these new investments would further develop specialty and alloy steel manufacturing capabilities. The ministry emphasised that the initiative aims to support industry scale up and technological advancement.

The secretary noted that the success of the scheme will depend on timely investment, commissioning and sustained production, and that the ministry will provide necessary support to participating companies. The PLI scheme for specialty steel was launched in July 2021 to attract capital investment and support technology upgradation in the downstream segment. Under PLI 1.0 the committed outcomes included Rs 271,060 mn of investment, 14,760 direct jobs and seven point nine mn t of production capacity, while PLI 1.1, launched on six January 2025, is expected to attract about Rs 170,000 mn, generate around 16,000 jobs and add six point four mn t of capacity.

An incentive of Rs 2,360 mn has been disbursed to participating companies so far. PLI 1.2, launched on four November 2025, covers 22 product sub-categories under four product categories and offers incentive rates ranging from four per cent to 15 per cent over a period of five years beginning in FY 2025–26, with disbursements commencing in FY 2026–27. The scheme is intended to catalyse investment, create skilled employment and reduce reliance on imports in strategic and commercial steel segments.

The Ministry of Steel signed Memoranda of Understanding for 85 projects by 55 companies under the Production-Linked Incentive Scheme 1.2 for specialty steel at Vigyan Bhawan in New Delhi on nine February 2026. Participating firms committed Rs 118,870 million and a committed capacity of eight point seven million tonnes in downstream steel and alloy making. The agreements form part of the government effort to deepen manufacturing capability and to promote Make in India objectives. The minister explained that the scheme is a key reform intended to strengthen domestic manufacturing, enhance global competitiveness, reduce import dependence and conserve foreign exchange while positioning India as a reliable supplier of high-value steel. The announcement indicated that these new investments would further develop specialty and alloy steel manufacturing capabilities. The ministry emphasised that the initiative aims to support industry scale up and technological advancement. The secretary noted that the success of the scheme will depend on timely investment, commissioning and sustained production, and that the ministry will provide necessary support to participating companies. The PLI scheme for specialty steel was launched in July 2021 to attract capital investment and support technology upgradation in the downstream segment. Under PLI 1.0 the committed outcomes included Rs 271,060 mn of investment, 14,760 direct jobs and seven point nine mn t of production capacity, while PLI 1.1, launched on six January 2025, is expected to attract about Rs 170,000 mn, generate around 16,000 jobs and add six point four mn t of capacity. An incentive of Rs 2,360 mn has been disbursed to participating companies so far. PLI 1.2, launched on four November 2025, covers 22 product sub-categories under four product categories and offers incentive rates ranging from four per cent to 15 per cent over a period of five years beginning in FY 2025–26, with disbursements commencing in FY 2026–27. The scheme is intended to catalyse investment, create skilled employment and reduce reliance on imports in strategic and commercial steel segments.

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