55 companies commit over Rs 11,000 cr investment under latest PLI 1.2 Scheme for Speciality Steel

New Delhi (PTI): Union Steel Minister HD Kumaraswamy on Monday launched the third round of the PLI Scheme for Speciality Steel, aiming to add 8.7 million tonnes capacity of the upgraded alloy steel.

In this regard, around 85 MoUs were signed between 55 companies, including SAIL's Salem Steel plant and the Ministry, under the PLI 1.2, committing Rs 11,887 crore worth of investments.

"PLI 1.2 is a decisive step towards building a resilient and globally competitive specialty steel ecosystem aligned with the vision of Prime Minister Narendra Modi. The scheme advances the twin priorities of Make in India and Aatmanirbhar Bharat by encouraging domestic capacity creation in advanced and strategic steel products," Kumaraswamy said in his address.

The minister said that these projects are expected to add 8.7 million tonnes (MT) of specialty steel capacity by FY2031, significantly expanding India's capabilities in high-end steel segments such as electrical steel, alloy and stainless steels, coated products, and grades required for strategic sectors.

On the rationale, the minister said the third round of the PLI Scheme has been launched in response to strong industry demand and the need for sustained capacity expansion in specialty steel, which is essential for sectors including automobiles, railways, defence, electrical equipment, and aerospace.

With incentive rates ranging from 4 per cent to 15 per cent over a five-year period, the scheme is designed to promote investment, technology upgradation, and value addition while integrating Indian manufacturers into global value chains.

The PLI 1.2 seeks to address structural gap by incentivising domestic production, conserving foreign exchange, and positioning India as a reliable global supplier of advanced steel, he noted.

The Union Minister said the achievements under earlier rounds of the PLI Scheme further reinforce the policy’s effectiveness. Across PLI 1.0 and 1.1, committed investments of Rs 43,874 crore have already translated into substantial on-ground progress, including significant capacity creation and employment generation.

Steel Secretary Sandeep Poundrik urged the players to stick to the timeline and avail the benefits of the scheme which provides incentives on production of special steel grades.

He said the timeline of scheme will is not going be extended further.

Poundrik said India’s installed steel capacity is currently 218 million tonnes per annum (mtpa), rising by 18 mtpa in the current fiscal itself.

He also noted the country will comfortably achieve the target of having 300 mtpa installed steel manufacturing capacity in 2031, and maybe 400 mtpa by 2035-36.