**Executive Summary**
The Ministry of Steel has signed Memorandums of Understanding (MoUs) for 85 specialty steel projects involving 55 companies under the Production-Linked Incentive (PLI) Scheme 1.2. The MoUs were signed on February 9, 2026. Participating companies have committed an investment of ₹11,887 crore, with a committed capacity of 8.7 million tonnes in downstream steel and alloy making.
**Key Points / Main Content**
* **PLI Scheme 1.2 Overview:**
* Third round of the Production-Linked Incentive (PLI) Scheme for Specialty Steel.
* Launched on November 4, 2025.
* Covers 22 product sub-categories under four product categories:
* Steel Grades for Strategic Sector.
* Commercial Grades – Category 1.
* Commercial Grades – Category 2.
* Coated & Wire Products.
* Incentive rates range from 4% to 15% for five years.
* Incentive disbursement starts from FY 2026–27.
* **Investments and Capacity:**
* Investment commitment of ₹11,887 crore by participating companies.
* Committed capacity of 8.7 million tonnes in downstream steel and alloy making.
* **PLI Scheme Impact:**
* Aimed at strengthening domestic manufacturing and enhancing global competitiveness.
* Expected outcomes under PLI 1.1, launched on January 6, 2025:
* Attract ₹17,000 crore investment.
* Generate 16,000 jobs.
* Add 6.4 million tonnes of production capacity.
* ₹236 crore incentive disbursed to participating companies so far under the scheme.
* **Background:**
* PLI Scheme for Specialty Steel launched in July 2021.
* PLI 1.0 committed outcomes: ₹27,106 crore investment, 14,760 direct jobs, and 7.9 million tonnes of production capacity.
**Impact Analysis**
**Participating Companies**
* **Impact:** Beneficiaries of the PLI scheme, receiving incentives for investments and production.
* **Action Required:** Ensure timely investment, commissioning, and sustained production to benefit from the scheme.
**Ministry of Steel**
* **Impact:** Responsible for overseeing the implementation and success of the PLI scheme.
* **Action Required:** Provide necessary support to participating companies.
**Indian Economy**
* **Impact:** Strengthened domestic manufacturing, reduced import dependence, and enhanced global competitiveness.
* **Action Required:** No immediate action required, but long-term benefits depend on the successful implementation of the PLI scheme.
Key Entities Referenced
Production-Linked Incentive (PLI) Scheme for Specialty Steel: A government initiative designed to boost domestic steel manufacturing by attracting investment and promoting technology upgrades.
Ministry of Steel: The primary governmental body responsible for the policy related to steel production and related initiatives.
Vigyan Bhawan, New Delhi: Location where the MoUs for the PLI scheme were signed.
Ministry of Steel
Ministry of Steel Signs MoUs for 85 Specialty
Steel Projects Involving Investment of ₹11,887
Crore
Ministry of Steel Signs MoUs with 55 Companies under PLI
Scheme 1.2 for Specialty Steel
Posted On: 09 FEB 2026 6:16PM by PIB Delhi
The Ministry of Steel signed Memorandum of Understanding (MoUs) for 85 projects of 55 companies
under the Production-Linked Incentive (PLI) Scheme 1.2 (Third round) for Specialty Steel on 09.02.2026
at Vigyan Bhawan, New Delhi, in the august presence of Shri H.D. Kumaraswamy, Minister of Steel
and Heavy Industries and officials from the Ministry of Steel. The launch of PLI 1.2 marks a
significant milestone towards achieving the government’s vision of “Make in India.”
Participating companies in this round have committed an investment of ₹11,887 crore and a committed
capacity of 8.7 million tonnes in downstream steel and alloy making.
Complementing the industry for their active participation, Shri H.D. Kumaraswamy mentioned that
Production Linked Incentive (PLI) Scheme is a key reform of the Government of India aimed at
strengthening domestic manufacturing and enhancing global competitiveness. He said that though India
has already made notable strides in specialty and alloy steel manufacturing, with these new investments,
India will further deepen its capabilities, reduce import dependence, conserve foreign exchange, and
emerge as a reliable supplier of high-value steel to the world.Shri Sandeep Poundrik, Secretary ministry of Steel emphasized that the scheme’s success depends on
timely investment, commissioning and sustained production by participating companies and mentioned
that the Ministry would extend all necessary support to the participating companies.
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 ₹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 ₹17,000 crore, generate around 16,000 jobs, and add 6.4 million tonnes of
production capacity.
An incentive of ₹236 crore has been disbursed to participating companies so far in the scheme.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% to 15% for a period of five years, commencing from FY 2025–26, with incentive
disbursement starting from FY 2026–27.
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AG
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