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The new capacity will focus on high-end steel products, including electrical steel, alloy and stainless steels, coated products, and strategic grades used in automobiles, railways, defence, electrical equipment, and aerospace.
HD Kumaraswamy launches PLI 1.2 for specialty steel
New Delhi: The Government of India launched the Production Linked Incentive (PLI) Scheme 1.2 for Specialty Steel, aiming to boost high-value manufacturing and reduce reliance on imports for critical steel grades after the MoU signing at Vigyan Bhawan.
The announcement coincided with the signing of 85 Memoranda of Understanding (MoUs) with 55 leading companies at Vigyan Bhawan, reflecting robust industry support for the initiative.
Speaking at the event, Union Minister for Steel and Heavy Industries HD Kumaraswamy said PLI 1.2 is an important step toward creating a globally competitive specialty steel industry.
Kumaraswamy added that the scheme supports Prime Minister Narendra Modi’s vision of global manufacturing leadership and promotes the Make in India and Aatmanirbhar Bharat initiatives by encouraging domestic production of advanced and strategic steel products.
Investments and Capacity Expansion
The 85 signed MoUs represent investments of Rs13,203 crore and are expected to add 8.7 million tonnes of specialty steel capacity by FY2031.
The new capacity will focus on high-end steel products, including electrical steel, alloy and stainless steels, coated products, and strategic grades used in automobiles, railways, defence, electrical equipment, and aerospace.
PLI 1.2 to Promote Investment and Technology
PLI 1.2, the third round of the scheme, offers incentives ranging from 4% to 15% over five years to promote investment, technology upgradation, value addition, and integration of Indian manufacturers into global value chains. Kumaraswamy highlighted that the scheme aims to bridge structural gaps, conserve foreign exchange, and position India as a reliable global supplier of advanced steel.
Building on Previous Success
The Minister also noted the success of earlier PLI rounds, which attracted ₹43,874 crore in committed investments, resulting in significant capacity creation and employment generation. He urged companies to implement their PLI 1.2 projects on time while maximizing the use of indigenous technology, assuring government support for timely resolution of operational challenges.
“PLI 1.2 will play a pivotal role in India’s journey to becoming a global hub for specialty steel manufacturing,” Kumaraswamy said, underlining the government’s commitment to deepening the domestic steel ecosystem and strengthening the entire value chain.
