Ministry Of Steel Signs MoUs For 85 Specialty Steel Projects Under PLI Scheme 1.2

New Delhi, Feb 10 (KNN) The Ministry of Steel has signed Memoranda of Understanding (MoUs) for 85 specialty steel projects involving 55 companies under the Production-Linked Incentive (PLI) Scheme 1.2 (third round), with a total committed investment of Rs11,887 crore. 

The MoU signing ceremony was held at Vigyan Bhawan, New Delhi, on February 9, 2026, in the presence of Union Minister for Steel and Heavy Industries H.D. Kumaraswamy and senior officials of the Ministry.

Under this round of the PLI scheme, participating companies have committed to creating 8.7 million tonnes of downstream specialty steel and alloy-making capacity, significantly strengthening India’s high-value steel manufacturing ecosystem. 

The launch of PLI Scheme 1.2 marks an important step towards advancing the Government of India’s Make in India and Aatmanirbhar Bharat objectives.

Addressing the gathering, H.D. Kumaraswamy said that the PLI Scheme is a key reform initiative aimed at boosting domestic manufacturing and enhancing India’s global competitiveness. 

He noted that while India has already made progress in specialty and alloy steel production, the new investments will further reduce import dependence, conserve foreign exchange and position India as a reliable global supplier of high-end steel products.

Secretary, Ministry of Steel, Sandeep Poundrik, highlighted that the success of the scheme depends on timely investment, commissioning and sustained production by the participating companies, and assured full support from the Ministry to facilitate implementation.

The PLI Scheme for Specialty Steel was originally launched in July 2021 to promote manufacturing, attract capital investment and support technology upgradation in the downstream steel sector. 

Under PLI 1.0, committed outcomes include investments of Rs27,106 crore, creation of 14,760 direct jobs and addition of 7.9 million tonnes of production capacity. PLI 1.1, launched in January 2025, is expected to attract around Rs17,000 crore in investment, generate about 16,000 jobs and add 6.4 million tonnes of capacity. An incentive amount of Rs236 crore has been disbursed to participating companies so far.

PLI Scheme 1.2, launched on November 4, 2025, covers 22 product sub-categories under four broad categories steel grades for strategic sectors, commercial grades (Category 1 and 2), and coated and wire products. 

The scheme offers incentive rates ranging from 4 per cent to 15 per cent for a period of five years, starting from FY 2025–26, with incentive disbursement commencing from FY 2026–27.

The Ministry said the third round of the PLI scheme responds to strong industry demand and is expected to play a crucial role in expanding India’s specialty steel capacity for key sectors such as automobiles, railways, defence, electrical equipment and aerospace, while integrating Indian manufacturers more deeply into global value chains.

(KNN Bureau)