The government has unveiled the third round of the Production Linked Incentive scheme for specialty steel, signalling a renewed push to strengthen domestic manufacturing and reduce import dependence. The expanded initiative, known as PLI 1.2, carries an outlay of ₹2,100 crore and now covers 22 additional grades of specialty steel. The move reflects the government’s strategy to enhance value addition in the steel sector and promote high-end steel production for critical industries.
The new phase of the scheme is designed to attract an estimated ₹44,000 crore in fresh investment, with a strong focus on applications across defence, aerospace, automotive, infrastructure, and renewable energy sectors. By encouraging local production of advanced steel varieties such as electrical, coated, alloyed, and high-strength grades, the programme aims to position India as a global hub for specialised steel manufacturing.
Industry stakeholders have welcomed the development, noting that it will help address gaps in India’s steel value chain and support the government’s broader Make in India mission. Specialty steel currently accounts for a modest share of the country’s total production, and much of it is still imported to meet domestic requirements. The PLI scheme seeks to change this by incentivising companies to invest in technology upgrades, research and development, and process innovation.
The focus on specialty steel also aligns with India’s long-term goals of achieving higher self-reliance in sectors where performance and quality are critical. Analysts believe the scheme could enhance the competitiveness of Indian steelmakers, create employment opportunities, and promote sustainable growth through advanced manufacturing practices.
By fostering collaboration between the public and private sectors, the latest PLI round represents an important step towards transforming India’s steel industry from a volume-driven to a value-driven growth model, strengthening its role in the nation’s industrial and infrastructure development.
