In a major policy push to strengthen India’s industrial base, the Union Ministry of Steel has launched the third round of the Production Linked Incentive (PLI) scheme for speciality steel, aiming to attract fresh investments worth ₹44,000 crore. The initiative, titled PLI 1.2, was unveiled by Union Steel Minister H D Kumaraswamy on November 4, 2025, in New Delhi. This phase builds on the success of the previous two rounds, which have already secured significant investor commitments and catalyzed capacity expansion across key steel segments.
The scheme is designed to reduce India’s dependence on imports of high-grade steel and position the country as a global hub for advanced steel manufacturing. It incentivizes domestic production of speciality steel used in critical sectors such as defence, aerospace, infrastructure, automotive, and renewable energy. The government expects this round to generate thousands of jobs, enhance value addition, and improve export competitiveness.
🧠 Key Features of PLI 1.2 for Speciality Steel
| Feature | Details |
|---|---|
| Scheme Name | PLI 1.2 for Speciality Steel |
| Launch Date | November 4, 2025 |
| Target Investment | ₹44,000 crore |
| Eligible Products | Coated steel, alloy steel, electrical steel, high-strength steel |
| Incentive Duration | 5 years |
| Implementation Agency | Ministry of Steel |
The scheme is part of the broader PLI framework approved by the Union Cabinet in July 2021.
📊 Investment Commitment Across PLI Rounds
| PLI Round | Year Launched | Investment Commitment (₹ crore) | Status |
|---|---|---|---|
| PLI 1.0 | 2021 | ₹22,000 | Under implementation |
| PLI 1.1 | 2023 | ₹18,000 | Projects initiated |
| PLI 1.2 | 2025 | ₹44,000 | Applications open |
The cumulative investment across all three rounds now exceeds ₹84,000 crore.
📈 Strategic Objectives of the Scheme
| Objective | Description |
|---|---|
| Import Substitution | Reduce reliance on imported high-grade steel |
| Capacity Expansion | Add 25 million tonnes of speciality steel capacity |
| Employment Generation | Create over 60,000 direct and indirect jobs |
| Export Growth | Boost exports of value-added steel products |
| Technology Upgradation | Encourage adoption of advanced metallurgical processes |
The scheme aligns with India’s Make in India and Atmanirbhar Bharat missions.
🗣️ Industry Reactions and Stakeholder Commentary
| Stakeholder | Commentary Summary |
|---|---|
| Steel Manufacturers | “PLI 1.2 is a game-changer for high-value segments.” |
| Policy Analysts | “This round reflects strategic targeting of defence and infrastructure.” |
| MSMEs in Steel Sector | “We seek clarity on eligibility and fund disbursement timelines.” |
| Exporters | “Incentives will help us compete globally.” |
The industry has welcomed the scheme, with calls for streamlined approvals and faster rollout.
📌 Speciality Steel Categories Under PLI 1.2
| Steel Type | Application Areas |
|---|---|
| Coated Steel | Automotive, appliances, construction |
| Electrical Steel | Transformers, motors, EVs |
| Alloy Steel | Defence, aerospace, railways |
| High-Strength Steel | Bridges, tunnels, heavy machinery |
These categories are critical for India’s infrastructure and strategic sectors.
📌 Conclusion
The launch of the third round of the PLI scheme for speciality steel marks a significant milestone in India’s industrial policy. With a targeted investment of ₹44,000 crore, the government aims to transform the domestic steel landscape, reduce import dependence, and enhance global competitiveness. As applications open and stakeholders prepare to participate, the success of PLI 1.2 will be pivotal in shaping India’s future as a leader in advanced steel manufacturing.
Disclaimer: This article is based on publicly available government announcements, industry reports, and media coverage. It is intended for informational and editorial purposes only and does not constitute investment or policy advice.
