India Launches PLI 1.2 for Specialty Steel, Signs 85 MoUs Worth ₹11,887 Crore

In a major push to strengthen India's high-value manufacturing base and reduce import dependence in critical steel grades, the Government of India has launched the Production Linked Incentive (PLI) Scheme 1.2 for Specialty Steel. The launch ceremony, held at Vigyan Bhawan, New Delhi, also witnessed the signing of 85 Memoranda of Understanding (MoUs) with participating companies, signalling strong industry confidence in India's long-term growth prospects.

The scheme marks a significant milestone in building a globally competitive specialty steel ecosystem, aligned with the national vision of Make in India and Aatmanirbhar Bharat.

₹11,887 Crore Investment Commitment Across 55 Companies

Under PLI Scheme 1.2, the Ministry of Steel has signed MoUs with 55 companies covering 85 projects, with a committed investment of:

• ₹11,887 crore in capital expenditure

• 8.7 million tonnes of specialty steel capacity addition by FY 2031

These projects will significantly expand India's capabilities in high-end steel segments such as:

• Electrical steel

• Alloy and stainless steel

• Coated steel products

• Strategic-grade steel for defence and aerospace

Kumaraswamy: PLI 1.2 Will Build a Resilient Specialty Steel Ecosystem

Addressing the gathering after the MoU signing ceremony, Union Minister for Steel and Heavy Industries Shri H. D. Kumaraswamy described PLI 1.2 as a decisive step toward building a resilient and globally competitive specialty steel sector.

He stated that the scheme is fully aligned with the vision of Prime Minister Shri Narendra Modi, advancing India's twin national priorities:

• Make in India

• Aatmanirbhar Bharat

The Minister emphasized that PLI 1.2 will encourage domestic capacity creation in advanced and strategic steel products, reducing India's reliance on imports and conserving foreign exchange.

Third Round Launched to Meet Strong Industry Demand

PLI 1.2 represents the third round of the Specialty Steel PLI initiative, introduced in response to robust industry demand and the need for sustained expansion in downstream steel manufacturing.

Specialty steel is essential for critical sectors including:

• Automobiles

• Railways

• Defence manufacturing

• Electrical equipment

• Aerospace and advanced engineering

With incentive rates ranging from 4% to 15% over five years, the scheme aims to promote:

• Technology upgradation

• Higher value addition

• Integration into global supply chains

• Domestic production of critical grades

Building on the Momentum of PLI 1.0 and PLI 1.1

The Union Minister highlighted that earlier rounds of the scheme have already demonstrated the effectiveness of the PLI approach.

Across PLI 1.0 and PLI 1.1, committed investments of:

• ₹43,874 crore

have translated into substantial progress in capacity creation and employment generation.

PLI 1.2 builds on this momentum by deepening India's specialty steel ecosystem and strengthening the entire value chain from raw material processing to high-end finished products.

Government Assures Full Support for Time-Bound Implementation

Concluding his address, Shri Kumaraswamy urged participating companies to implement projects in a time-bound manner while maximising the use of indigenous technologies and inputs.

He reiterated the Government's commitment to facilitation and timely resolution of operational challenges, noting that the success of PLI 1.2 will play a pivotal role in India's journey toward becoming a global hub for specialty steel manufacturing.