The Ministry of Steel on Monday signed Memoranda of Understanding (MoUs) for 85 projects involving 55 companies under the Production-Linked Incentive (PLI) Scheme 1.2 (third round) for specialty steel at Vigyan Bhawan, New Delhi. The MoUs were signed in the presence of Minister of Steel and Heavy Industries H.D. Kumaraswamy and senior officials of the Ministry of Steel.
The signing of the MoUs marks a significant step towards advancing the government’s Make in India vision. Participating companies under this round have committed an investment of ₹11,887 crore and a combined production capacity of 8.7 million tonnes in downstream steel and alloy manufacturing.
Addressing the event, Minister of Steel and Heavy Industries H.D. Kumaraswamy said the Production-Linked Incentive Scheme is a key reform initiative of the Government of India aimed at strengthening domestic manufacturing and enhancing global competitiveness. He said that while India has already made notable progress in specialty and alloy steel manufacturing, the fresh investments will further deepen domestic capabilities, reduce import dependence, conserve foreign exchange, and help India emerge as a reliable supplier of high-value steel globally.
Secretary, Ministry of Steel Sandeep Poundrik said the success of the scheme depends on timely investments, commissioning and sustained production by participating companies, and added that the Ministry would extend all necessary support to ensure effective implementation.
The Production-Linked Incentive Scheme for Specialty Steel was launched in July 2021 to promote manufacturing, attract capital investment and support technology upgradation in the downstream segment of the steel sector. Under PLI 1.0, the committed outcomes include investment of ₹27,106 crore, creation of 14,760 direct jobs and addition of 7.9 million tonnes of production capacity.
Building on this, 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. So far, incentives amounting to ₹236 crore have been disbursed to participating companies under the scheme.
PLI 1.2 was launched on November 4, 2025, and covers 22 product sub-categories under four product categories: steel grades for strategic sector, commercial grades category 1, commercial grades category 2, and coated and wire products. The scheme offers incentive rates ranging from 4 percent to 15 percent for a period of five years, commencing from FY 2025–26, with incentive disbursement starting from FY 2026–27.
