THEBUSINESSBYTES BUREAU

NEW DELHI, FEBRUARY 9, 2026

In a major boost to India’s manufacturing ambitions, the Union Ministry of Steel on Monday signed Memoranda of Understanding for 85 specialty steel projects involving 55 companies under the Production-Linked Incentive (PLI) Scheme 1.2. The agreements mark a significant step in strengthening domestic capabilities in high-value and alloy steel production and advancing the government’s “Make in India” vision.

The projects, cleared under the third round of the PLI scheme for specialty steel, entail a committed investment of ₹11,887 crore and will add a downstream steel and alloy-making capacity of 8.7 million tonnes. The MoU signing ceremony took place in the presence of Union Minister for Steel and Heavy Industries H.D. Kumaraswamy and senior officials of the Ministry of Steel.

Highlighting the strategic importance of the initiative, Minister Kumaraswamy said the PLI scheme is one of the government’s most critical reforms to strengthen domestic manufacturing and enhance India’s global competitiveness. While acknowledging the progress already made in specialty and alloy steel manufacturing, he noted that the new round of investments would further deepen India’s industrial capabilities, reduce import dependence, conserve foreign exchange and position the country as a reliable global supplier of high-value steel products.

Secretary, Ministry of Steel, Sandeep Poundrik, underlined that the success of the scheme hinges on timely investments, swift commissioning of projects and sustained production by participating companies. He assured industry stakeholders that the Ministry would extend all necessary facilitation and support to ensure smooth implementation and achievement of committed targets.

Launched in July 2021, the Production-Linked Incentive Scheme for Specialty Steel aims to promote domestic manufacturing, attract capital investment and support technology upgradation in the downstream steel sector. The first phase of the scheme, PLI 1.0, has already generated committed investments of ₹27,106 crore, created 14,760 direct jobs and added 7.9 million tonnes of production capacity. Building on this momentum, PLI 1.1, launched in January 2025, is expected to attract around ₹17,000 crore in investment, generate nearly 16,000 jobs and add 6.4 million tonnes of capacity.

So far, incentives worth ₹236 crore have been disbursed to participating companies under the scheme, reflecting steady progress in project execution and production milestones.

PLI 1.2, launched in November 2025, expands the scheme’s scope by covering 22 product sub-categories across four broad segments, including steel grades for strategic sectors, two categories of commercial grades, and coated and wire products. The scheme offers incentive rates ranging from 4 per cent to 15 per cent over a five-year period beginning FY 2025–26, with disbursements scheduled to start from FY 2026–27.