Speciality steel PLI 1.2 gets Rs 11,887 crore investment commitments

The centre has received investment commitments of Rs 11,887 crore under the speciality steel production linked incentive (PLI) 1.2 scheme. An official statement said 85 agreements were signed with 55 companies Monday. These projects are expected to add 8.7 million tonnes of specialty steel capacity by FY 2031. These will ramp up India’s capabilities in high-end steel segments such as electrical steel, alloy and stainless steels, coated products, and grades required for strategic sectors.

“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,” Union Steel and Heavy Industries Minister H D Kumaraswamy said, noting the achievements under earlier rounds of the PLI Scheme reinforce the policy’s effectiveness.

Officials said ArcelorMittal Nippon Steel, Jindal Stainless, Ratnamani Metals and Tubes, and Steel Authority of India Limited (SAIL), are among those who signed agreements under PLI 1.2.


This third round of the PLI Scheme caters to the need for sustained capacity expansion in specialty steel, which is essential for sectors including automobiles, railways, defence, electrical equipment, and aerospace, the statement said.

Incentive rates range from 4% to 15% 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.

According to official estimates, committed investments of Rs 43,874 crore have translated into “substantial on-ground progress,” across PLI 1.0 and 1.1.

Also speaking at the event, Steel Secretary Sandeep Poundrik said European Union’s (EU’s) Carbon Border Adjustment Mechanism (CBAM) - which penalises steel manufactured through high emission processes - remains a challenge but the centre is committed to supporting Indian exporters.

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.