Govt Launches PLI 1.2 for Specialty Steel: Driving 'Atmanirbhar Bharat' in High-Value Steel
Ministry of Steel launches the third round (PLI 1.2) of the Specialty Steel Production Linked Incentive Scheme to attract investment and reduce import dependence.
New Delhi, November 4, 2025 - The Ministry of Steel, Government of India, today launched the Third Round (PLI 1.2) of the Production Linked Incentive (PLI) Scheme for Specialty Steel. The launch, held at the Steel Room, Udyog Bhawan, New Delhi, was presided over by the Hon'ble Union Minister for Steel and Heavy Industries, Shri H.D. Kumaraswamy, underscoring the government's commitment to the 'Atmanirbhar Bharat' (Self-Reliant India) initiative.
The PLI Scheme for Specialty Steel, initially approved by the Union Cabinet in July 2021 with an overall outlay of ₹6,322 crore, is a pivotal move aimed at transforming India into a global hub for advanced steel grades. The scheme is designed to incentivize incremental production and substantial investment across identified product categories, which will, in turn, enhance value addition within the country. This strategic push is expected to significantly reduce India's reliance on imports for critical sectors, including defence, power, aerospace, and infrastructure.
The prior two rounds of the scheme have already shown robust results, securing a committed investment of ₹43,874 crore, of which ₹22,973 crore has been invested to date, concurrently generating over 13,000 jobs.
PLI 1.2 continues to cover 22 high-value product sub-categories, notably including super alloys, CRGO (Cold-Rolled Grain-Oriented) steel, alloy forgings, stainless steel (long and flat), titanium alloys, and coated steels. Incentive rates for these categories range from 4% to 15% and will be applicable for five years, commencing from the Financial Year (FY) 2025-26, with the first disbursal scheduled for FY 2026-27. To ensure the scheme reflects current market dynamics, the base year for pricing has been updated to FY 2024-25.
The Minister, along with senior officials and key industry stakeholders present at the event, highlighted that the new round aims to accelerate domestic capacity creation for sophisticated steel products, making the Indian steel industry more resilient and globally competitive.
