The Government of India has rolled out the third round (PLI 1.2) of the Production-Linked Incentive (PLI) Scheme for Specialty Steel, signalling a major push to position India as a global hub for advanced and high-grade steel production. The scheme—originally approved in July 2021 with an outlay of ₹6,322 crore—now commands committed investments of about ₹43,874 crore, and has generated over 30,760 direct jobs from the earlier rounds.
In this new phase, the PLI covers 22 product sub-categories across five broad segments—including super-alloys, CRGO, stainless-steel long/flat products, titanium alloys and coated steels—targeting strategic sectors such as defence, aerospace, energy, automotive and infrastructure. Incentive rates range from 4 % to 15 % of incremental sales and will be available over a five-year period starting FY 2025-26, with disbursement beginning FY 2026-27. The base year for incentive calculation has also been updated to FY 2024-25 to reflect current market dynamics.
This move advances India’s Atmanirbhar Bharat and Viksit Bharat 2047 goals by building domestic capacity in high-grade steel, reducing import dependence, and expanding value-added manufacturing for strategic sectors. It signals strong policy commitment to technology-driven investment, high-skill employment, and export competitiveness, while deepening India’s integration into global value chains. For industry, PLI 1.2 provides a clear pathway to scale specialty steel production, strengthen clusters across tier-2/3 regions, and catalyse ecosystem development through innovation and supply-chain upgrading..
What is a PLI Scheme? → A Production-Linked Incentive (PLI) scheme provides financial incentives to eligible domestic manufacturers based on incremental sales of locally manufactured goods, with the objective of driving investment, technology upgrade, value-addition and exports in target sectors.
Relevant Question for Policy Stakeholders:
What monitoring framework will ensure that PLI benefits are linked to measurable outcomes in productivity, value-addition, and supply-chain formalization?
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