PLI push: Govt launches third round for speciality steel, eyes Rs 44,000 crore fresh investment for boosting production

Seeking to strengthen India’s position as a global hub for advanced steel production, the government on Tuesday launched the third round of the Production Linked Incentive (PLI) scheme for speciality steel, aimed at driving new investments and cutting import dependence in high-value segments such as defence, aerospace, automobiles, and infrastructure.Union Steel Minister H D Kumaraswamy formally launched the latest round — titled ‘PLI 1.2’ — at an event in the capital, citing strong investor interest and commitments worth around Rs 44,000 crore secured under the first two phases, PTI reported.Approved by the Union Cabinet in July 2021, the PLI scheme for speciality steel has a total outlay of Rs 6,322 crore and is expected to add about 26 million tonnes of new speciality steel capacity over the next few years.“So far, the PLI scheme has attracted investment commitments worth Rs 43,874 crore and is expected to add 14.3 million tonnes of new specialty steel capacity in India,” Kumaraswamy said.According to government data, companies participating in the first two rounds have already invested Rs 22,973 crore and generated 13,284 jobs as of September 2025.“The response to the first two rounds has been highly encouraging. The success demonstrates the strength of India’s reform-oriented and industry-driven policy framework,” the minister added.Kumaraswamy said the third phase of the scheme, PLI 1.2, is designed to accelerate India’s progress toward becoming a global manufacturing hub for high-grade steels. “It will attract new investments in emerging and advanced categories such as super alloys, CRGO steel, stainless steel long and flat products, titanium alloys, and coated steels — materials that are essential for next-generation industrial and defence applications,” he noted.The latest round also opens up new avenues for both existing and new players, including MSMEs, looking to expand or upgrade capacity after the success of earlier phases. “Through this initiative, we aim not just to produce steel for India, but to supply the world from India,” Kumaraswamy said.Steel Secretary Sandeep Poundrik said the total investment in the third round would become clearer in the coming months and added that “some relaxations have been introduced this time to encourage wider participation.”The PLI scheme incentivises incremental production and value addition in 22 identified product sub-categories, including super alloys, CRGO, alloy forgings, stainless steel (long and flat), titanium alloys, and coated steels.Incentive rates range between 4% and 15%, applicable for five years starting 2025–26, with payouts beginning in the next fiscal year. The base year for pricing has been updated to 2024–25 to reflect prevailing market conditions.As per official data, the first round attracted commitments worth Rs 27,106 crore, of which Rs 22,343 crore has already been invested. The second round (PLI 1.1) received commitments of Rs 17,000 crore, with Rs 630 crore invested till September 2025.