Earlier in an event in Delhi, Steel Secretary Sandeep Poundrik had stressed on the need to make more investments in specialty Steel to cut imports as demand in the defence, auto, and space sector grows. He had pointed out that India imports most of the electric steel it uses, which it needs to produce in larger quantities to add more transformers as power demand grows.
The PLI Scheme for specialty Steel, approved by the Cabinet in July 2021, aims to increase domestic steel production, generate jobs and expand high-end steel capacity. Steel Ministry’s PLI scheme has so far attracted a commitment in investment of ₹43,874 crores, resulted in direct employment of 30,760 people and an estimated production of 14.3 million tonnes of specialty Steel has been identified in the scheme. As of September 2025, participating companies in the first two rounds have invested ₹22,973 crore and generated 13,284 jobs.
Key Highlights of the Third Round (PLI 1.2):
Application Window: Applications are invited through the online portal https://plimos.mecon.co.in for a period of 30 days from the date of launch
Eligibility: Companies registered in India engaged in end-to-end manufacturing of the notified products are eligible to apply
Product Coverage: The third round of PLI Scheme covers 22 product sub-categories across five broad target segments including strategic steel grades, commercial grades (Categories 1 and 2), and coated/wire products
Incentive Rates: Incentives will range from 4% to 15% of incremental sales, depending on the product sub-category and year of production
Incentive Period: Benefits will be available for a maximum of five years starting from FY 2025–26, with incentive disbursal commencing in FY 2026–27