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PLI 1.2 Boosts India Speciality Steel Ecosystem
Steel

PLI 1.2 Boosts India Speciality Steel Ecosystem

The Government of India launched Production Linked Incentive Scheme 1.2 for speciality steel at Vigyan Bhawan in New Delhi, marking a step to strengthen high-value manufacturing and reduce import dependence in critical steel grades. The launch included the signing of memoranda of understanding with industry participants, with 85 MoUs signed with 55 companies and committed investments of Rs118,870 million (mn). The projects are expected to add eight point seven mn tonne (t) of speciality steel capacity by FY 2031, expanding capabilities in electrical steel, alloy and stainless steels, coated products and grades for strategic sectors.

Union Minister for Steel and Heavy Industries H. D. Kumaraswamy said PLI 1.2 is a decisive measure aligned with the vision of Prime Minister Narendra Modi and that it advances the twin priorities of Make in India and Aatmanirbhar Bharat by incentivising domestic capacity creation in advanced and strategic steel products. He urged industry to proceed with projects promptly and to maximise the use of indigenous technologies and inputs.

The scheme provides incentive rates ranging from four per cent to 15 per cent over a five-year period and is designed to promote investment, technology upgradation and value addition while integrating Indian manufacturers into global value chains. The policy framework aims to conserve foreign exchange and position India as a reliable global supplier of advanced steel by addressing structural production gaps and encouraging value chain deepening. The launch included commitments across segments critical for high-end applications, signalling robust industry confidence in long-term growth prospects.

The minister highlighted that earlier rounds, PLI 1.0 and 1.1, had secured committed investments of Rs438,740 million (mn) and translated into substantial on-ground progress including capacity creation and employment generation, reinforcing the policy’s effectiveness. He reiterated the government’s commitment to facilitation and timely resolution of operational issues and said the success of PLI 1.2 will be pivotal to India’s journey towards becoming a global hub for speciality steel manufacturing. Participating companies were called upon to implement projects in a time-bound manner to realise the scheme’s objectives.

The Government of India launched Production Linked Incentive Scheme 1.2 for speciality steel at Vigyan Bhawan in New Delhi, marking a step to strengthen high-value manufacturing and reduce import dependence in critical steel grades. The launch included the signing of memoranda of understanding with industry participants, with 85 MoUs signed with 55 companies and committed investments of Rs118,870 million (mn). The projects are expected to add eight point seven mn tonne (t) of speciality steel capacity by FY 2031, expanding capabilities in electrical steel, alloy and stainless steels, coated products and grades for strategic sectors. Union Minister for Steel and Heavy Industries H. D. Kumaraswamy said PLI 1.2 is a decisive measure aligned with the vision of Prime Minister Narendra Modi and that it advances the twin priorities of Make in India and Aatmanirbhar Bharat by incentivising domestic capacity creation in advanced and strategic steel products. He urged industry to proceed with projects promptly and to maximise the use of indigenous technologies and inputs. The scheme provides incentive rates ranging from four per cent to 15 per cent over a five-year period and is designed to promote investment, technology upgradation and value addition while integrating Indian manufacturers into global value chains. The policy framework aims to conserve foreign exchange and position India as a reliable global supplier of advanced steel by addressing structural production gaps and encouraging value chain deepening. The launch included commitments across segments critical for high-end applications, signalling robust industry confidence in long-term growth prospects. The minister highlighted that earlier rounds, PLI 1.0 and 1.1, had secured committed investments of Rs438,740 million (mn) and translated into substantial on-ground progress including capacity creation and employment generation, reinforcing the policy’s effectiveness. He reiterated the government’s commitment to facilitation and timely resolution of operational issues and said the success of PLI 1.2 will be pivotal to India’s journey towards becoming a global hub for speciality steel manufacturing. Participating companies were called upon to implement projects in a time-bound manner to realise the scheme’s objectives.

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