India’s steel industry is undergoing a transformation. With the launch and expansion of the Production-Linked Incentive (PLI) Scheme for specialty steel, the government is doubling down on its commitment to making India self-reliant in high-grade steel production.
The second round of the scheme, dubbed PLI 1.1, has garnered strong industry participation and is poised to reshape the country’s steel landscape.
The PLI Scheme for specialty steel aligns with Prime Minister Narendra Modi’s “Make in India” initiative, aiming to reduce the country’s dependency on imported high-end steel. Despite being the world’s second-largest steel producer and consumer, India continues to rely on imports for certain specialty steel products. The scheme is designed to bridge this gap by incentivising domestic production.
Initially launched in July 2021, the PLI Scheme for specialty steel covers five broad categories and 19 sub-categories. It offers incentives ranging from 3% to 4% based on investment and production targets.
Notably, only Indian-registered companies involved in end-to-end steel manufacturing are eligible, ensuring that the benefits stay within the domestic ecosystem.
Encouraged by the response to the first round, where 44 applications were submitted by 23 companies, the government introduced Round 2 to accommodate greater industry interest. The second round received 42 applications from 25 companies, representing a commitment of ₹17,000 crore in investments.
This overwhelming response led to the signing of 42 Memorandums of Understanding (MoUs), signalling a major leap in India’s self-reliance journey.
At the recent MoU signing event, Union Steel Minister H.D. Kumaraswamy praised the collaborative efforts of the Ministry of Steel and technical consultant MECON. He highlighted the speed and efficiency in rolling out the second round and acknowledged the vital role of stakeholders in making the scheme a success.
He also appealed directly to Indian steelmakers to invest in the production of specialty steel. “If you succeed in producing specialty steel domestically, it will boost our capacity and self-reliance,” he urged.
The expanded scope of the PLI Scheme is expected to bolster India’s position in the global steel market. With financial incentives, increased investment, and active government support, the initiative aims to turn India into a global hub for high-quality, value-added steel.
Kumaraswamy expressed gratitude to Prime Minister Modi for his leadership and reiterated the government’s long-term commitment to supporting the steel sector through forward-looking policies.
As the PLI 1.1 scheme gains traction, it marks a significant step towards reducing India’s import dependency and enhancing the country’s manufacturing capabilities. With strong public-private collaboration, the future of India’s specialty steel sector looks both promising and globally competitive.
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Published on: Mar 25, 2025, 2:23 PM IST
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