New Delhi: The Ministry of Steel signed Memorandums of Understanding (MoUs) for 85 projects across 55 companies under the Production-Linked Incentive (PLI) Scheme 1.2 (third round) for Specialty Steel on February 9, 2026, at Vigyan Bhawan, New Delhi, in the presence of H D Kumaraswamy, Minister of Steel and Heavy Industries, along with officials from the Ministry of Steel.
The launch of PLI 1.2 for Specialty Steel marks a significant milestone toward achieving the government’s “Make in India” vision.
Participating companies in this round have committed an investment of ₹11,887 crore and a committed capacity of 8.7 million tonnes in downstream steel and alloy making.
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Specialty Steel PLI Scheme: Strengthening Domestic Manufacturing
Complementing the industry for their active participation, H D Kumaraswamy mentioned that the Production Linked Incentive (PLI) Scheme is a key reform of the Government of India aimed at strengthening domestic manufacturing and enhancing global competitiveness.
He said that though India has already made notable strides in specialty and alloy steel manufacturing, with these new investments, India will further deepen its capabilities, reduce import dependence, conserve foreign exchange, and emerge as a reliable supplier of high-value steel to the world.
Sandeep Poundrik, Secretary, Ministry of Steel, emphasized that the scheme’s success depends on timely investment, commissioning, and sustained production by participating companies and mentioned that the Ministry would extend all necessary support to the participating companies.
PLI Scheme for Specialty Steel
The Production-Linked Incentive (PLI) Scheme for Specialty Steel was launched in July 2021 to promote manufacturing, attract capital investment, and support technology up-gradation in the downstream segment of the steel sector.
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Under PLI 1.0, the committed outcomes include ₹27,106 crore of investment, 14,760 direct jobs, and 7.9 million tonnes of production capacity.
PLI 1.1, launched on January 6, 2025, is expected to attract investment of about ₹17,000 crore, generate around 16,000 jobs, and add 6.4 million tonnes of production capacity.
An incentive of ₹236 crore has been disbursed to participating companies so far under the scheme.
PLI 1.2 was launched on November 4, 2025, covering 22 product sub-categories under four product categories, namely:
- Steel Grades for Strategic Sector
- Commercial Grades – Category 1
- Commercial Grades – Category 2
- Coated & Wire Products
The scheme offers incentive rates ranging from 4% to 15% for a period of five years, commencing from FY 2025–26, with incentive disbursement starting from FY 2026–27.
