The government on Tuesday launched the third round of production linked incentive (PLI 1.2) scheme for “specialty steel” to attract new investments in these emerging and advanced steel products.
According to the ministry of steel, the PLI 1.2 is aimed at attracting fresh investments in categories such as super alloys, cold rolled grain oriented steel, stainless steel long and flat products, titanium alloys, and coated steels, materials that are essential for next-generation industrial and defence applications.
Indian-registered companies involved in end-to-end manufacturing of the specified products can submit applications via online portal within 30 days from the launch.
The PLI 1.2 covers 22 sub-categories across five major segments, including strategic steel grades, commercial grades (Categories 1 and 2), and coated/wire products. The incentive rates would be 4% to 15% on incremental sales , varying by sub-category and production year. The incentive period will be upto five years, starting from the current financial year, with disbursements beginning in 2026-27.
At the launch of the scheme, Union minister of steel H.D. Kumaraswamy said the third round will also open up new avenues for micro small and medium enterprises and existing producers who have expanded or upgraded their capacities following the earlier phases. “PLI 1.2 is designed to accelerate India’s journey toward becoming a global hub for high-grade steel production,” Kumaraswamy said.
Approved by the Cabinet in July 2021, the PLI scheme for Specialty Steel was introduced with a total outlay of Rs 6,322 crore to encourage production of high-value, high-grade steels used in sectors such as defence, aerospace, energy, automobiles, and infrastructure.
Since its inception, the scheme has attracted investment commitments worth Rs 43,874 crore, created 30,760 direct jobs, and is expected to add 14.3 million tonnes of new specialty steel capacity in India, the ministry said.
According to the government data, as of September 2025, companies participating in the first two rounds have already invested Rs 22,973 crore and generated 13,284 jobs.