What is the Newly Launched 3rd Round of the PLI Scheme for Specialty Steel?
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Synopsis
The third round of the PLI scheme for specialty steel was launched by Union Minister H.D. Kumaraswamy, promising significant investments, job creation, and a focus on advanced steel products. This initiative aims to position India as a global leader in specialty steel manufacturing.
Key Takeaways
- Investment Commitment: Rs 43,874 crore attracted.
- Job Creation: Expected to generate 30,760 jobs.
- Production Target: 14.3 million tonnes of specialty steel.
- Eligible Products: 22 sub-categories across various segments.
- Incentives: Range from 4% to 15% for five years.
New Delhi, Nov 4 (NationPress) The Union Minister for Steel and Heavy Industries, H.D. Kumaraswamy, officially inaugurated the third phase of the production-linked incentive (PLI) scheme for specialty steel on Tuesday, as stated in a formal announcement.
So far, the Steel Ministry’s PLI initiative has garnered an investment commitment of Rs 43,874 crore, anticipated to generate direct employment for 30,760 individuals and an estimated output of 14.3 million tonnes of specialty steel. By September 2025, companies involved in the initial two phases of the PLI scheme have invested Rs 22,973 crore and created 13,284 jobs, as per the statement.
This PLI Scheme for Specialty Steel, which received Cabinet approval in July 2021, is a crucial part of the Atmanirbhar Bharat initiative aimed at establishing India as a global steel production hub. The third phase (PLI 1.2) seeks to draw new investments in advanced steel products, including super alloys, CRGO, stainless steel long and flat products, titanium alloys, and coated steels. This initiative is projected to create substantial employment opportunities, enhance high-end steel manufacturing capacity, and position India as a favored supplier in the global specialty steel value chain, the statement indicated.
Applications for the third phase of the PLI scheme for specialty steel can be submitted via the online portal https://plimos.mecon.co.in over a 30-day period from the launch date.
Indian companies engaged in the comprehensive manufacturing of the specified products are eligible to apply.
The third phase of the PLI Scheme encompasses 22 product sub-categories across five primary target segments, which include strategic steel grades, commercial grades (Categories 1 and 2), and coated/wire products.
The incentives provided will range from 4% to 15% of incremental sales, varying by product sub-category and production year. Benefits are available for a maximum of five years starting from FY 2025-26, with incentive disbursement expected to begin in FY 2026-27.
The base year for pricing under the scheme has been updated from 2019-20 to 2024-25 to align with current market trends, the statement concluded.
Point of View
The launch of the third phase of the PLI scheme signifies India's commitment to enhancing its manufacturing capabilities in specialty steel. This initiative not only aims to generate substantial employment but also strengthens India's position in the global market, aligning with the nation's goals of self-reliance and economic growth.
NationPress
09/11/2025
Frequently Asked Questions
What is the purpose of the PLI scheme for specialty steel?
The PLI scheme aims to encourage investments in specialty steel manufacturing, create jobs, and enhance India's position as a global leader in this sector.
How much investment has the PLI scheme attracted so far?
The PLI scheme has attracted a commitment for investment of Rs 43,874 crore.
What products are covered under the third round of the PLI scheme?
The third round covers 22 product sub-categories, including super alloys, CRGO, and stainless steel products.
How can companies apply for the PLI scheme?
Companies can apply through the online portal https://plimos.mecon.co.in within 30 days of the launch.
What are the incentive percentages offered?
Incentives range from 4% to 15% of incremental sales depending on the product category.
