New Delhi: Union Minister for Steel and Heavy Industries H.D. Kumaraswamy on Monday launched the PLI 1.2 scheme for specialty steel, calling it a decisive step towards building a globally competitive and resilient steel ecosystem.
The launch event, held at Vigyan Bhawan in New Delhi, also saw the signing of Memoranda of Understanding with participating industry players. The minister said the initiative aligned fully with Prime Minister Narendra Modi’s vision of Make in India and Aatmanirbhar Bharat by promoting domestic manufacturing of high-value steel products.
Under the PLI 1.2 scheme, the government signed 85 MoUs with 55 companies, committing investments worth ₹11,887 crore. These projects are expected to add 8.7 million tonnes of specialty steel capacity by FY 2031. The expansion will focus on high-end segments, including electrical steel, alloy and stainless steels, coated products, and grades required for strategic sectors.
Kumaraswamy said the scheme aimed to reduce India’s dependence on imports of critical steel grades. He noted that strengthening domestic capacity would also help conserve foreign exchange and improve supply reliability for key industries.
PLI 1.2 scheme targets high-end steel capacity
The minister said the third round of the Production Linked Incentive programme was launched due to strong industry demand. He added that sustained capacity expansion in specialty steel was essential for sectors such as automobiles, railways, defence, electrical equipment, and aerospace.
Under the scheme, incentive rates will range from 4% to 15% over a five-year period. According to the minister, this structure would encourage fresh investment, technology upgrades, and higher value addition. He said it would also help Indian manufacturers integrate into global value chains.
Referring to earlier rounds, Kumaraswamy said PLI 1.0 and 1.1 had already attracted committed investments of ₹43,874 crore. He said these commitments translated into tangible progress, including capacity creation and employment generation. He added that the new scheme built on this momentum by deepening the domestic steel ecosystem.
The minister urged participating companies to complete their projects within stipulated timelines. He also called for maximum use of indigenous technologies and inputs. He assured industry players of government support and timely resolution of operational issues, stating that the success of PLI 1.2 scheme would be crucial to India’s ambition of becoming a global hub for specialty steel manufacturing.
