Steel Ministry Signs MoUs for 85 Specialty Steel Projects Under PLI 1.2

The MoU signing ceremony was held at Vigyan Bhawan, New Delhi, in the august presence of Shri H.D. Kumaraswamy, Union Minister of Steel and Heavy Industries, along with senior officials of the Ministry.

In a major boost to India’s specialty steel manufacturing ambitions, the Ministry of Steel today signed Memoranda of Understanding (MoUs) for 85 projects from 55 companies under the Production-Linked Incentive (PLI) Scheme 1.2 (Third Round) for Specialty Steel.

The MoU signing ceremony was held at Vigyan Bhawan, New Delhi, in the august presence of Shri H.D. Kumaraswamy, Union Minister of Steel and Heavy Industries, along with senior officials of the Ministry.

The launch and expansion of PLI 1.2 marks another significant milestone in the Government of India’s flagship vision of “Make in India”, aimed at strengthening domestic manufacturing, reducing import dependence, and positioning India as a global supplier of high-value steel products.

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₹11,887 Crore Investment Commitment to Expand Downstream Capacity

Companies participating in the third round have committed:

• Investment: ₹11,887 crore

• Committed Capacity: 8.7 million tonnes

• Focus on downstream steel and alloy manufacturing

These investments are expected to accelerate the production of advanced specialty steel required for strategic sectors such as defence, automobiles, infrastructure, energy, and high-end engineering.

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PLI Scheme Key to Building Global Competitiveness: Kumaraswamy

Congratulating the industry for its active participation, Shri H.D. Kumaraswamy highlighted that the PLI Scheme is one of the Government’s most important manufacturing reforms.

He stated that while India has already made notable progress in specialty and alloy steel, the new investments will:

• Deepen India’s manufacturing capabilities

• Reduce import dependence

• Conserve foreign exchange

• Establish India as a reliable global supplier of high-value steel

“The PLI Scheme is central to strengthening domestic manufacturing and enhancing India’s global competitiveness,” the Minister said.

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Ministry Assures Full Support for Timely Implementation

Shri Sandeep Poundrik, Secretary, Ministry of Steel, emphasized that the scheme’s success will depend on:

• Timely investment

• Speedy commissioning of projects

• Sustained production by participating companies

He assured that the Ministry will extend all necessary support to ensure successful implementation of the projects under PLI 1.2.

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PLI Specialty Steel: A Transformational Initiative Since 2021

The PLI Scheme for Specialty Steel, launched in July 2021, aims to promote domestic manufacturing, attract capital investment, and encourage technology upgradation in the downstream steel sector.

Achievements Under Earlier Rounds

PLI 1.0 committed outcomes include:

• ₹27,106 crore investment

• 14,760 direct jobs

• 7.9 million tonnes production capacity

PLI 1.1, launched on January 6, 2025, is expected to bring:

• ₹17,000 crore investment

• 16,000 jobs

• 6.4 million tonnes capacity addition

So far, incentives worth ₹236 crore have already been disbursed to participating companies.

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PLI 1.2: Expanded Coverage and Higher Incentives

PLI 1.2 was launched on November 4, 2025, covering 22 product sub-categories across four major product categories:

1. Steel Grades for Strategic Sector

2. Commercial Grades – Category 1

3. Commercial Grades – Category 2

4. Coated & Wire Products

Key features include:

• Incentive rates ranging from 4% to 15%

• Incentive period of five years

• Commencement from FY 2025–26

• Disbursement starting FY 2026–27

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Strengthening India’s Specialty Steel Ecosystem

With 85 new projects signed under PLI 1.2, India is poised to significantly strengthen its specialty steel value chain, enhance technological capabilities, and secure a larger share in global high-grade steel markets.

The initiative is expected to support India’s long-term goals of becoming Atmanirbhar in critical steel inputs while driving industrial growth, employment, and export competitiveness.