PLI SCHEME FOR SPECIALTY STEEL

NEWS

• Union government has launched the third round of the Production Linked Incentive (PLI) scheme, termed “PLI 1.2”, for specialty steel.
• Objective: To attract investment, enhance domestic production, and reduce steel imports.

 HIGHLIGHTS

Financial Outlay and Capacity Target

• Total Outlay: ₹6,322 crore.
• Goal: To add 26 million tonnes of specialty steel production capacity in the coming years.
• The scheme aligns with India’s broader industrial strategy to boost self-reliance (Atmanirbhar Bharat) in key manufacturing sectors.

Background of the PLI Scheme

• Approval: The Union Cabinet approved the PLI scheme for specialty steel in July 2021.
• Purpose: To promote high-value and high-grade steel manufacturing in India.
• Target Sectors: Defence, aerospace, energy, automobiles, and infrastructure.

Focus Areas in the 3rd Round

• Encourages investment in advanced steel categories such as:
  • Super alloys
  • Cold Rolled Grain Oriented (CRGO) steel
  • Stainless steel (long and flat products)
  • Titanium alloys
  • Coated steels
• These materials are crucial for next-generation industrial and defence applications.

 Achievements So Far

• Investment Commitments: ₹43,874 crore under earlier rounds.
• Capacity Addition: 14.3 million tonnes of new specialty steel.
• Actual Investments (till Sept 2025): ₹22,973 crore.
• Employment Generated: Over 13,284 jobs.

Significance and Future Outlook

• The PLI scheme’s success highlights India’s industry-driven, reform-oriented policy environment.
• 3rd Round Benefits:
  • Opens opportunities for existing firms and MSMEs.
  • Includes relaxations to attract more investors.