India’s Steel Minister HD Kumaraswamy has launched the third round of the Production-Linked Incentive (PLI) Scheme for Specialty Steel, targeting the addition of 8.7 mln tons of upgraded alloy and specialty steel capacity by FY2031.
Under the PLI 1.2 round, around 85 memoranda of understanding were signed with 55 companies, including Steel Authority of India Limited’s Salem Steel Plant, committing investments of INR 13,203 crore (USD 1.46 bln). The projects are expected to strengthen India’s capabilities in high-end steel segments such as electrical steel, alloy and stainless steels, coated products and grades used in strategic sectors.
Kumaraswamy said the scheme supports the government’s Make in India initiatives by promoting domestic capacity creation, technology upgradation and value addition. Incentives under the scheme range from 4pct to 15pct over five years and are aimed at integrating Indian producers into global value chains.
The minister said the new round was launched in response to strong industry demand and the need for sustained capacity expansion to support sectors including automobiles, railways, defence, electrical equipment and aerospace. He added that earlier rounds of the PLI scheme have already attracted committed investments of INR 43,874 crore (USD 1.46 bln), translating into capacity creation and job generation.
Steel Secretary Sandeep Poundrik urged participating companies to adhere to project timelines to fully benefit from the incentives available for specialty steel production.
1 USD / 90.7 INR
