India's Specialty Steel Revolution: PLI Scheme 1.2 Launched

Union Steel Minister HD Kumaraswamy announced the third round of the PLI Scheme for Speciality Steel, aiming to increase capacity by 8.7 million tonnes. With 85 MoUs signed with investments worth Rs 13,203 crore, the scheme promotes Make in India, boosting domestic production and strategic global competitiveness.

Union Steel Minister HD Kumaraswamy has unveiled the third phase of the Production-Linked Incentive (PLI) Scheme for Specialty Steel, targeting an additional capacity of 8.7 million tonnes. This initiative saw 85 MoUs finalized between major companies, including SAIL's Salem Steel plant and the ministry, promising Rs 13,203 crore in projected investments.

Kumaraswamy highlighted the PLI 1.2 Scheme as a critical step towards bolstering a resilient and globally competitive specialty steel industry, in line with Prime Minister Narendra Modi's 'Make in India' and 'Aatmanirbhar Bharat' programs. The scheme's third phase responds to strong sector demand and aims for sustained capacity growth, crucial for industries such as automotive, railways, and aerospace.

With incentive rates ranging from 4% to 15% over five years, PLI 1.2 is designed to stimulate investment and technology enhancement while integrating Indian manufacturers into global value chains. The minister noted previous rounds of the scheme have already generated substantial progress, emphasizing its success in expanding capacity and creating jobs.

(With inputs from agencies.)