New Delhi: The government is set to launch the third phase of the Production-Linked Incentive (PLI) Scheme for Specialty Steel Tuesday. The initiative forms a vital part of the Atmanirbhar Bharat vision, aimed at boosting domestic manufacturing and reducing import dependency across critical sectors.
Union Minister H.D. Kumaraswamy will lead the PLI 1.2 launch alongside senior officials and industry leaders, the Ministry of Steel said. The event adds another milestone to India’s effort to build a strong and competitive steel industry capable of producing high-grade specialty steel for global markets.
The Union Cabinet approved the scheme in July 2021 with a total budget of ₹6,322 crore. It aims to make India a global hub for advanced steel production, fostering innovation, supporting exports, and driving self-reliance in the steel and metals sectors.
The scheme drew ₹43,874 crore in committed investments, and ₹22,973 crore already went into implementation. It also created over 13,000 jobs during the first two phases, reflecting its success in driving growth and generating employment within India’s manufacturing ecosystem.
The PLI scheme includes 22 product sub-categories such as super alloys, CRGO, alloy forgings, stainless steel, titanium alloys, and coated steels. Incentives from 4% to 15% will apply for five years starting FY 2025–26, with disbursements beginning in FY 2026–27.
To align better with market conditions, the base year for pricing changed to FY 2024–25. This update allows fairer incentive calculations and ensures that benefits reflect real-time trends in pricing and production, helping manufacturers plan and perform more efficiently.
The program encourages new investments and higher output in chosen product categories. It also promotes technology upgrades and greater value addition, while cutting import dependence in critical areas like aerospace, power, defence, and infrastructure, supporting India’s long-term economic sustainability and growth.
India targets 300 million tonnes of crude steel capacity by 2030. Domestic steel demand continues to rise 11–13% annually, supported by government-backed infrastructure projects, even as global steel demand remains uncertain due to slowing economies worldwide.
Steel output rose 14.1% in September year-on-year, driven by stronger demand from infrastructure expansion. The steady growth highlights India’s growing industrial capability and how the PLI Scheme strengthens the nation’s progress toward a self-reliant and globally competitive steel industry.