The signing ceremony was held on Monday at Vigyan Bhawan in New Delhi, attended by Minister for Steel and Heavy Industries HD Kumaraswamy and senior ministry officials.
Under the signed MoUs, the companies committed a total investment of INR 11,887 crore in steel and alloy production, along with a pledged production capacity of 8.7 million tons. This round of the program aims to support domestic manufacturing in line with the government’s “Make in India” vision.
Speaking at the ceremony, Minister HD Kumaraswamy stated that the Production Linked Incentive Scheme is a key reform initiative designed to strengthen domestic manufacturing and increase global competitiveness. He emphasized that the new investments will deepen local capacity, reduce import dependence and reinforce India’s position as a reliable supplier of high value added steel.
Steel Secretary Sandeep Poundrik emphasized that the success of the projects depends on timely execution of investments and sustainable production, adding that the ministry will provide the necessary support throughout the implementation process.
The Production Linked Incentive Scheme for Specialty Steel was launched in July 2021 to promote value added production in the steel sector, attract capital investment and support technological development. Under PLI 1.0, companies committed investments of INR 27,106 crore, the creation of 14,760 direct jobs and an additional production capacity of 7.9 million tons.
Launched on January 6, 2025, PLI 1.1 is expected to attract around INR 17,000 crore in investment, create approximately 16,000 jobs and add 6.4 million tons of production capacity. So far, incentive payments totaling INR 236 crore have been disbursed under the program.
PLI 1.2, launched on November 4, 2025, covers 22 product sub categories under four main categories, including steel grades for strategic sectors, commercial grade category 1 and 2, as well as coated and wire products. The program will offer incentive rates ranging from 4% to 15% for five years starting from the 2025-26 fiscal year, while incentive disbursements will begin in the 2026-27 fiscal year.
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