In November 2025, Union Minister H.D.Kumaraswamy, Ministry of Steel (MoS), has officially launched the third round of PLI scheme for Specialty Steel (PLI scheme 1.2) to bolster domestic production of high-value, advanced steel products.
- This initiative support ‘Atmanirbhar Bharat’ by cutting imports and making India a global specialty steel hub.
Exam Hints:
- What? Launch of PLI 1.2
- By: Union Minister H.D.Kumaraswamy, MoS
- PLI for Specialty Steel: Approved in July 2021
- Outlay: Rs.6322 cr
- Implementation: FY24 to FY30
- Agency: MoS; PMA – MECON Limited
- Achievements : Rs. 43,874 cr committed, 30,760 jobs, 14.3 MT specialty steel output.
- PLI 1.2 for Specialty Steel:
- Scope: 22 categories
- Incentive: 4% to 15%, Period – Five years from FY26
- Base Year: FY25
- Steel Targets: 300 MT by 2030, 500 MT by 2047
About PLI scheme for Specialty Steel:
Approval: The PLI Scheme for Specialty Steel, approved with an with a total outlay of Rs. 6,322 crore by the Union Cabinet headed by Prime Minister(PM) Narendra Modi in July 2021 .
Implementation Period: The implementation period of this scheme is from Financial Year 2023-24(FY24) to FY30.
Implementation Agency: The PLI Scheme for Specialty Steel, led by the MoS, is executed with support from MECON Limited as the Project Management Agency(PMA), handling secretarial, managerial, and implementation tasks.
Launch Timeline: The first round of the PLI Scheme for Specialty Steel (PLI 1.0) was launched in 2022, followed by the second round (PLI 1.1) in January 2025.
Impact : So far, the scheme has secured Rs. 43,874 cr in committed investments, created 30,760 direct jobs, and targets 14.3 million tonnes (MT) of specialty steel output.
- As of September 2025, companies from the first two rounds have invested Rs. 22,973 cr, generating over 13,000 jobs.
About PLI 1.2:
Application Window: Apply online at https://plimos.mecon.co.in
within 30 days of launch.
Eligibility: Indian-registered companies engaged in end-to-end manufacturing of notified products.
Scope: The scheme will continue to cover 22 product sub-categories, across five major product clusters
- Super alloys and titanium alloys
- Cold Rolled Grain Oriented (CRGO) steel
- Alloy and stainless steel (long and flat)
- Coated steels and
- Alloy forgings
Incentive Rate: The incentive rates will range from 4% to 15% depending on the product type and the level of value addition achieved.
Incentive Period: The incentive period will extend for five years starting FY 26, with disbursals scheduled to begin from FY 27.
Base Year: The base year for pricing has been updated to FY25 from FY20, reflecting current market conditions and input cost structures.
India Aims to Double Steel Capacity to 300 Million Tonnes by 2030
In November 2025, Sandeep Poundrik, Secretary of the MoS, announced that the Government of India(GoI) aims to achieve 300 MT of steel capacity by 2030 and 500MT by 2047, during the the inaugural session of the Confederation of Indian Industry (CII) Steel Summit 2025 held in New Delhi, Delhi.
Demand: India’s domestic steel demand is growing at an impressive 11-13%, fuelled by large-scale infrastructure projects.
Production: The steel production surged by a robust 14.1% in September 2025 compared to the same month of the previous year on the back of increased demand from big-ticket infrastructure projects.
About Ministry of Steel(MoS):
Union Minister – H.D.Kumaraswamy (Constituency – Mandya, Karnataka)
Minister of State (MoS) – Bhupathiraju Srinivasa Varma (Constituency – Narsapuram, Andhra Pradesh, AP)
