Union Minister for Steel and Heavy Industries, H.D. Kumaraswamy, has launched the third round of the Production-Linked Incentive (PLI) Scheme for speciality steel manufacturing.

Approved by the Cabinet in July 2021, the PLI Scheme has already drawn investment commitments worth Rs 438.74 billion, expected to create 30,760 direct jobs and generate around 14.3 million tonnes of speciality steel across identified product categories.

As of September 2025, companies participating in the first two rounds have invested Rs 229.73 billion and created 13,284 jobs. The initiative aligns with the Atmanirbhar Bharat vision to make India a global steel manufacturing hub.

The third round, termed PLI 1.2, seeks to attract new investments in advanced and emerging steel products such as super alloys, CRGO, stainless steel long and flat products, titanium alloys, and coated steels. It is expected to generate employment, enhance high-end steel capacity, and strengthen India’s role in global speciality steel value chains.

Only companies registered in India and engaged in end-to-end manufacturing of notified products will be eligible to apply. The application window will remain open for 30 days.

Covering 22 product sub-categories across five broad segments—including strategic and commercial steel grades and coated or wire products—the scheme offers incentives ranging from 4 to 15 per cent on incremental sales, depending on the product and year of production.

The incentive will apply for a maximum of five years from FY2025–26, with disbursal beginning in FY2026–27. The Steel Ministry has also revised the base year for steel prices from 2019–20 to 2024–25 to reflect current market trends.

(Source: mint)