The Production Linked Incentive (PLI) Scheme for Specialty Steel, approved in July 2021 with a budget of ₹6,322 crore, aims to boost specialty steel production through financial incentives. It offers incentives for five years, from FY 2024-25 to FY 2030-31, to companies meeting specified investment and production targets. PLI 1.2 sub-categories include Alloy Steel, CRGO, Amorphous Steel, Cladded Steel, Stainless Steel Wire, Hose Wire, Coated Steel Products, etc. In the first and second rounds, 19 and 25 companies committed ₹27,106 crore and ₹17,000 crore investments, respectively. Until October 2025, participating beneficiary companies have invested ₹23,022 crore, produced 2.33 million tonnes of specialty steel, and generated 13,343 employments. The Minister of State in the Ministry of Steel is Shri Bhupathiraju Srinivasa Varma. The Lok Sabha Unstarred Question number is 323, for answer on 02.12.2025.
Key Entities Referenced
Production Linked Incentive (PLI) Scheme for Specialty Steel: A scheme approved by the Union Cabinet in July 2021 to boost specialty steel production through financial incentives.
Ministry of Steel: The government ministry responsible for overseeing the steel industry in India.
LOK SABHA: The lower house of the Parliament of India, where the question regarding the PLI scheme was raised.
GOVERNMENT OF INDIA
MINISTRY OF STEEL
LOK SABHA
UNSTARRED QUESTION NO. 323
FOR ANSWER ON 02.12.2025
SALIENT FEATURES OF PLI 1.2 SCHEME
323. SHRI BHARTRUHARI MAHTAB:
Will the Minister of STEEL be pleased to state:
(a) the salient features of the third round of the Production Linked Incentive (PLI) 1.2
Scheme for Speciality Steel;
(b) the category of advanced and high-grade steel targeted under this phase;
(c) the details of the expected benefits to domestic manufacturers and MSMEs; and
(d) the total investment commitments, employment generation and capacity addition
achieved under the previous rounds of the PLI Scheme?
ANSWER
THE MINISTER OF STATE IN THE (SHRI BHUPATHIRAJU SRINIVASA VARMA)
MINISTRY OF STEEL
(a)to(d): Production Linked Incentive (PLI) Scheme for Specialty Steel was approved
by the Union Cabinet in July, 2021 with a budget of ₹6,322 crore which aims to boost
specialty steel production through financial incentives. The scheme offers incentives
for five years, from Financial Year 2024-25 to Financial Year 2030-31, to companies
that meet specified investment and production targets. The Specialty Steel Product
sub-categories for PLI 1.2 includes Alloy Steel, CRGO, Amorphous Steel, Cladded
Steel, Stainless Steel Wire, Hose Wire, Coated Steel Products etc. In the first and
second rounds, 19 companies have committed ₹27,106 crore investment and 25
companies have committed ₹17,000 crore investment, respectively. Till October,
2025, the participating beneficiary companies have invested ₹23,022 crore, produced
2.33 million tonnes of specialty steel, and generated 13,343 employments.
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