Govt Launches Third Round Of PLI Scheme For Speciality Steel To Boost Investment, Cut Imports

The government on Tuesday (4 November) launched the third phase of the Production Linked Incentive (PLI) Scheme for speciality steel, aimed at attracting fresh investment and reducing import dependence in key sectors such as defence, power, aerospace, and infrastructure.

Union Steel Minister HD Kumaraswamy announced the new round, titled ‘PLI 1.2’, at an event in New Delhi, marking a continuation of the Centre’s effort to make India a global hub for high-grade and value-added steel.

The PLI scheme for speciality steel was originally approved by the Union Cabinet in July 2021, with a total outlay of Rs 6,322 crore.

It offers financial incentives on incremental production and investment in select steel categories to strengthen domestic manufacturing capabilities.

The launch of PLI 1.2 is a step forward in creating an ecosystem for advanced steel production in India.

Under the first two rounds of the scheme, the government has received committed investments worth Rs 43,874 crore, out of which Rs 22,973 crore has already been deployed.

These rounds have also created over 13,000 jobs, according to official data.

The scheme currently covers 22 sub-categories of speciality steel, including cold-rolled grain-oriented (CRGO) steel, stainless steel (long and flat), alloy steel, coated steel, super alloys, titanium alloys, and alloy forgings.

Incentives under PLI 1.2 will range from 4 per cent to 15 per cent, applicable for five years starting FY2025-26, with disbursements to begin in the next fiscal year.

The base year for pricing has been revised to 2024-25 to align with current market conditions.

The fresh round of applications is expected to draw strong participation from both existing steelmakers and new entrants seeking to expand into high-end steel segments.

Please click here to add Swarajya as your preferred and trusted news source on Google

Also Read: Manufacturing Momentum Grows In October As GST Cuts And Strong Demand Boost Output