**Executive Summary**
This document is an answer from the Minister of State in the Ministry of Steel regarding Unstarred Question No. 464 in the Lok Sabha, concerning the Production Linked Incentive (PLI) Scheme for Specialty Steel. The response details the scheme's progress, including production figures, fund disbursement (₹83.62 crore as of December 2025), and review mechanisms. A third round of the PLI Scheme (PLI 1.2) was launched on November 4, 2025.
**Key Points / Main Content**
* **PLI Scheme Overview:**
* The PLI Scheme for Specialty Steel incentivizes production for five years, from FY 2024-25 to FY 2030-31.
* Incentives are provided to companies that meet specified investment and production targets.
* Companies participating in the scheme have plants in multiple states across India.
* **Production Data:**
* Specialty steel production under the PLI Scheme:
* FY 2023-24: 313,000 tonnes
* FY 2024-25: 1,124,000 tonnes
* FY 2025-26: 1,110,000 tonnes
* **Financial Data:**
* As of December 2025, ₹83.62 crore has been disbursed to beneficiary companies under the PLI Scheme.
* **Scheme Monitoring and Enhancement:**
* All projects under the PLI Scheme are reviewed regularly concerning investment and production.
* A third round of the PLI Scheme (PLI 1.2) was launched on November 4, 2025, to strengthen implementation and encourage advanced steel manufacturing.
**Impact Analysis**
**Beneficiary Companies**
* **Impact:** Increased revenue due to incentives, increased production, and access to investment.
* **Action Required:** Meet specified investment and production targets to receive incentives, participate in regular reviews, and align with the goals of PLI 1.2.
**Government of India**
* **Impact:** Increased domestic production of specialty steel, improved compliance with investment and production targets, strengthened steel manufacturing capabilities.
* **Action Required:** Continuously monitor the scheme's progress, conduct regular reviews, and implement measures to encourage advanced steel manufacturing, including the implementation of PLI 1.2.
Key Entities Referenced
PLI Scheme for Specialty Steel: A government scheme to incentivize domestic production of specialty steel by providing incentives to companies that meet specific investment and production targets.
Ministry of Steel: The government ministry responsible for administering the PLI Scheme for Specialty Steel.
Karnataka: A state in India where beneficiary units of the PLI Scheme are located and whose production and investment are specifically mentioned in the query.
GOVERNMENT OF INDIA
MINISTRY OF STEEL
LOK SABHA
UNSTARRED QUESTION NO. 464
FOR ANSWER ON 03.02.2026
PLI SCHEME FOR SPECIALTY STEEL
464. SHRI RAHUL SINGH LODHI:
SMT. KAMLESH JANGDE:
SHRI P C MOHAN:
SHRI KALI CHARAN SINGH:
SHRI LUMBARAM CHOUDHARY:
SHRI BUNTY VIVEK SAHU:
SHRI JANARDAN MISHRA:
Will the Minister of STEEL be pleased to state:
(a) whether the PLI Scheme for Specialty Steel has led to an increase in domestic
production since its launch and the year-wise production levels achieved, including the
contribution from units located in the State of Karnataka including Bengaluru region,
State-wise;
(b) whether funds have been released to beneficiary units in the country including
Karnataka under the Scheme and if so, the total amount disbursed as on December
2025, State-wise;
(c) whether the Government has reviewed the utilisation of incentives and compliance
with investment and production targets by beneficiary companies in the country
including Karnataka and those in and around Bengaluru, State-wise;
(d) if so, the key findings of such reviews and the steps taken to further strengthen
implementation and encourage advanced steel manufacturing in the country including
Karnataka, State-wise; and
(e) whether the Government has any proposal to promote new investments,
establishment of units, employment generation or value-addition activities related to
special steel under the PLI Scheme in Chhindwara district of Madhya Pradesh and if
so, the details thereof?
ANSWER
THE MINISTER OF STATE IN THE (SHRI BHUPATHIRAJU SRINIVASA VARMA)
MINISTRY OF STEEL
(a)to(e): Production Linked Incentive (PLI) Scheme for Specialty Steel has been
approved by Government to incentivise specialty steel production and offers incentives
for five years, between the period FY 2024-25 to F Y 2030-31, to companies that meet
specified investment and production targets. In two rounds of the scheme, participating
companies have their plants in the states of Andhra Pradesh, Gujarat, Haryana,
Jharkhand, Karnataka, Maharashtra, Odisha, Punjab, Tamil Nadu, Uttar Pradesh and
West Bengal.
Till December 2025, incentives of ₹83.62 crore were disbursed to beneficiary
companies.
Contd….2/-: 2 :
Production of specialty steel under PLI Scheme for the FY 2023-24, 2024-25
and 2025-26 are 313 ('000t), 1124 ('000t) and 1110 ('000t) respectively.
All projects under PLI Scheme are reviewed regularly w.r.t. investment and
production. To strengthen implementation and encourage advanced steel
manufacturing in the country, a third round (PLI 1.2) was launched on 04 Nov 2025.
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