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India's Steel Ambitions: Third PLI Scheme Round Launches Amid Growth

The Indian government is set to launch the third round of its Production-Linked Incentive (PLI) scheme for specialty steel on Tuesday, as part of the Atmanirbhar Bharat initiative. Union Minister H.D. Kumaraswamy will oversee the event, highlighting the scheme's success in attracting significant investments and creating over 13,000 jobs. With incentive rates between 4 to 15 percent, the scheme encourages local production and reduces import reliance. As India aims for a 300 million tonne crude steel production capacity by 2030, the domestic demand, driven by infrastructure projects, continues to grow at an impressive 11-13 percent.

Key Points: India Launches Third PLI Scheme for Specialty Steel

  • Union Minister H.D. Kumaraswamy to preside over the PLI 1.2 launch
  • Scheme aims to transform India into a global hub for advanced steel grades
  • Committed investment of Rs 43,874 crore with over 13,000 jobs created so far
  • Incentive rates range from 4 to 15 percent, disbursal starts FY 2026–27
2 min read

Centre to launch third round of PLI scheme for specialty steel

India launches third PLI scheme for specialty steel—boosting production, investment, and job creation.

Centre to launch third round of PLI scheme for specialty steel
"The PLI Scheme for Specialty Steel aims to transform India into a global hub. - Ministry of Steel"

New Delhi, Nov 4

The government was set to launch the third round of the production-linked incentive (PLI) scheme for Specialty Steel on Tuesday, which is one of the key initiatives under the Atmanirbhar Bharat vision.

The PLI 1.2 launch will be presided over by Union Minister H.D. Kumaraswamy, in the presence of senior officials, and other stakeholders from the sector, according to Ministry of Steel.

The ministry said that the PLI Scheme for Specialty Steel, approved by the Union Cabinet in July 2021 with an overall outlay of Rs 6,322 crore, aims to transform India into a global hub for production of high-value and advanced steel grades.

The PLI scheme has attracted a committed investment of Rs 43,874 crore so far, with Rs 22,973 crore already invested and over 13,000 jobs created under the first two rounds.

The scheme covers 22 product sub-categories including super alloys, CRGO, alloy forgings, stainless steel (long and flat), titanium alloys, and coated steels.

Incentive rates range from 4 per cent to 15 per cent, applicable for five years starting FY 2025–26, with disbursal beginning in FY 2026–27.

The base year for pricing has also been updated to FY 2024–25 to better reflect current trends.

The PLI scheme incentivises incremental production and investment in identified product categories, thereby enhancing value addition within the country and reducing import dependence in critical sectors such as defence, power, aerospace and infrastructure.

Meanwhile, the country aims to achieve 300 million tonnes of crude steel production capacity by 2030. Notably, India's domestic steel demand is growing at an impressive 11-13 per cent, fuelled by large-scale infrastructure projects, while global demand faces a slowdown, according to Steel Ministry.

Steel production surged by a robust 14.1 per cent in September compared to the same month of the previous year on the back of increased demand from big-ticket infrastructure projects being carried out by the government.

—IANS

- IANS

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Reader Comments

R
Rohit P
While I appreciate the government's efforts, I hope this scheme actually reaches the small and medium steel manufacturers. Sometimes these incentives only benefit the big players. The implementation needs to be monitored closely.
A
Arjun K
Atmanirbhar Bharat in action! Reducing import dependence in critical sectors like defence and aerospace is crucial for national security. The focus on specialty steel will make us self-reliant. Jai Hind! 🙏
V
Vikram M
The 14.1% production growth in September shows how infrastructure development is driving our economy. More such initiatives are needed to achieve the 300 million tonnes target by 2030. Good going!
S
Sarah B
As someone working in manufacturing, I can see the positive impact of these schemes. The updated base year for pricing to FY 2024-25 is a practical move that reflects current market realities. Smart planning!
K
Karthik V
₹43,874 crore committed investment is massive! This will definitely boost our manufacturing sector and create more employment opportunities for our youth. Hope the benefits reach all states equally.

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