India Launches Third PLI Scheme to Boost Speciality Steel Production

India's Steel Minister HD Kumaraswamy initiated a significant step on Tuesday by unveiling the third round of the Production Linked Incentive (PLI) Scheme for speciality steel. This move is part of the government's broader strategy to amplify domestic steel production capabilities and decrease dependency on imports.

The unveiling of 'PLI 1.2' for speciality steel reflects the government's commitment to transform India into a global hub for high-value, advanced steel grades. Approved by the Union Cabinet in 2021 with a significant budget, the scheme promotes production and investment in critical sectors including defence and aerospace.

Thus far, the initial rounds have attracted substantial investments and job creation. The scheme encompasses 22 product sub-categories with incentive rates ranging from 4 to 15 percent. The goal is to begin disbursing these incentives by the fiscal year 2025–26, establishing a new pricing base in 2024–25.