Steel Ministry signs MOUs for 85 projects under PLI

The Union Ministry of Steel signed Memorandum of Understanding (MoUs) for 85 projects of 55 companies under the third-round of Production-Linked Incentive (PLI) Scheme 1.2 for Specialty Steel, with committed investment of Rs 11,887 crore and capacity of 8.7 million tonnes in downstream steel and alloy making.

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PLI 1.2 was launched on 04 November 2025, covering 22 product sub-categories under four product categories, namely: (i) Steel Grades for Strategic Sector, (ii) Commercial Grades – Category 1, (iii) Commercial Grades – Category 2, and (iv) Coated & Wire Products. The scheme offers incentive rates ranging from 4 per cent to 15 per cent for a period of five years, commencing from FY 2025–26, with incentive disbursement starting from FY 2026–27.

The Production-Linked Incentive (PLI) Scheme for Specialty Steel was launched in July 2021 to promote manufacturing, attract capital investment and support technology up-gradation in downstream segment of steel sector. Under PLI 1.0, the committed outcomes include Rs 27,106 crore of investment, 14,760 direct jobs, and 7.9 million tonnes of production capacity.

PLI 1.1, launched on 06 January 2025, is expected to attract investment of about  Rs 17,000 crore, generate around 16,000 jobs, and add 6.4 million tonnes of production capacity. An incentive of  Rs 236 crore has been disbursed to participating companies so far in the scheme.

 

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