India Expands Specialty Steel Mission: Third Round of PLI Scheme Launched to Boost Advanced Steel Manufacturing

Union Minister of Steel and Heavy Industries, Shri H.D. Kumaraswamy, has officially launched the third phase of the Production Linked Incentive (PLI) Scheme for Specialty Steel, marking a major milestone in India’s steel manufacturing journey. The initiative, a cornerstone of the Atmanirbhar Bharat vision, aims to transform India into a global hub for high-quality and value-added steel production.

Since its inception in July 2021, the PLI Scheme for Specialty Steel has attracted strong interest from domestic and international players. So far, it has generated investment commitments worth ₹43,874 crore, direct employment for 30,760 people, and an estimated annual production capacity of 14.3 million tonnes of specialty steel. Companies participating in the first two rounds have already invested ₹22,973 crore, creating over 13,000 jobs by September 2025.

The newly launched third round, known as PLI 1.2, focuses on driving new investments in emerging and advanced steel categories such as super alloys, stainless steel long and flat products, cold-rolled grain-oriented (CRGO) steel, titanium alloys, and coated steels. This phase is designed to enhance India’s manufacturing capabilities in high-end steel segments that are critical for sectors like defense, aerospace, automotive, and renewable energy.

Applications for the third round are open for 30 days through the official portal: https://plimos.mecon.co.in. Eligible Indian-registered companies engaged in end-to-end manufacturing of notified products can apply. The scheme covers 22 product sub-categories under five major target segments, with incentives ranging from 4% to 15% based on incremental sales and product type.

Incentives will be provided for up to five years starting from FY 2025–26, with disbursements beginning in FY 2026–27. To align with current market realities, the base year for price calculations has been updated from 2019–20 to 2024–25.

With this new phase, the Ministry of Steel envisions not only strengthening India’s self-reliance in high-grade steel but also positioning the nation as a preferred global supplier. The initiative is expected to generate significant employment, attract technology-driven investments, and propel India toward becoming a global powerhouse in specialty steel production.