The Government of India has launched the third round of the Production Linked Incentive (PLI) scheme for specialty steel (PLI 1.2) with the objective of strengthening India’s position as a global hub for advanced steel production. The initiative aims to reduce import dependence and promote high-end steel manufacturing in sectors such as defence, aerospace, manufacturing, and infrastructure.The move reflects a reform-oriented and industry-driven policy framework, focusing on enhancing domestic value addition and technological capability in the steel sector.
The PLI scheme for specialty steel was approved in July 2021 with a total outlay of ₹6,322 crore. It aims to create incremental steel capacity of 28 million tonnes over five years.
This indicates gradual scaling of investments and industrial capacity under the scheme.
The scheme targets 22 identified sub-categories of high-grade steel, emphasizing advanced and critical materials required for next-generation industries.Key focus areas include:
These materials are essential for defence production, renewable energy, automobiles, and aerospace industries, thereby linking the scheme with strategic and high-value sectors.
The scheme is designed to encourage incremental production and value addition, rather than just capacity creation.
The third round is expected to:
It also aims to reduce import dependence in high-value steel categories, thereby improving trade balance and supply chain resilience.
The launch of PLI 1.2 for specialty steel marks a significant step in India’s industrial policy, focusing on high-value manufacturing, technological advancement, and global integration. By targeting advanced steel categories and incentivizing production, the scheme is expected to transform India’s steel sector from volume-driven to value-driven growth.