PLI Scheme for Specialty Steel — Third Round (PLI 1.2)
Union Minister of Steel and Heavy Industries H.D. Kumaraswamy launched the third round of the PLI scheme for Specialty Steel on 4 November 2025. OBJECTIVE: Boost domestic production of specialty steel, reduce imports, and attract investment in high-value steel manufacturing under Atmanirbhar Bharat. KEY FEATURES: - Covers 22 product sub-categories across 5 segments (strategic steel grades, commercial grades, coated/wire products) - Incentives: 4% to 15% of incremental sales for up to 5 years - Benefits start FY 2025-26, disbursement from FY 2026-27 - Modified thresholds to enable MSME and downstream unit participation - Base year updated from 2019-20 to 2024-25 - Applications through online portal for 30 days from launch BENEFICIARIES: Indian-registered companies in end-to-end specialty steel manufacturing BUDGET: ₹6,322 crore (total outlay since Cabinet approval July 2021) IMPACT: First two rounds attracted ₹43,874 crore investment, generated 30,760 jobs, 14.3 MT estimated production capacity
- Third round of PLI scheme for Specialty Steel launched on 4 November 2025 by Ministry of Steel and Heavy Industries
- Total outlay ₹6,322 crore since Cabinet approval in July 2021; incentives of 4% to 15% of incremental sales for up to 5 years
- Covers 22 product sub-categories across 5 segments including strategic steel grades, commercial grades, coated and wire products
- Modified thresholds to enable MSME and downstream unit participation; base year updated from 2019-20 to 2024-25
- First two rounds attracted ₹43,874 crore investment, generated 30,760 jobs, and 14.3 MT estimated production capacity
- Applications open through online portal for 30 days from launch; benefits start FY 2025-26 with disbursement from FY 2026-27
What is the PLI Scheme for Specialty Steel — Third Round?
It is the third round (PLI 1.2) of the Production Linked Incentive scheme for Specialty Steel, launched on 4 November 2025 by Union Minister H.D. Kumaraswamy under the Ministry of Steel and Heavy Industries.
What is the objective of the scheme?
The objective is to boost domestic production of specialty steel, reduce imports, and attract investment in high-value steel manufacturing under Atmanirbhar Bharat.
What products and incentives does PLI 1.2 cover?
The scheme covers 22 product sub-categories across 5 segments including strategic steel grades, commercial grades, and coated/wire products, with incentives of 4% to 15% of incremental sales for up to 5 years.
What is the budget and timeline for disbursement?
The total outlay is ₹6,322 crore since the Cabinet approval of July 2021. Benefits start in FY 2025-26 with disbursement from FY 2026-27, and the base year has been updated from 2019-20 to 2024-25.
What was the impact of the first two rounds?
The first two rounds attracted ₹43,874 crore in investment, generated 30,760 jobs, and delivered an estimated 14.3 MT production capacity. Applications for Round 3 are through the online portal for 30 days from launch.
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