PLI scheme for Specialty Steel (PLI 1.2)

Why in news?

Union Minister of Steel and Heavy Industries launches the 3^rd round of PLI scheme for Specialty Steel (PLI scheme 1.2).

• Aim - It is a flagship initiative to transform India into a global hub for high-value, advanced steel manufacturing.
• Launched in - July 2021.

Specialty steel – It is a value-added steel, enhanced with elements like chromium or nickel, offering greater strength, corrosion resistance, and durability than regular steel.

PLI 1.2 –

• Aim – To attract new investments in emerging & advanced steel products like super alloys, electrical steel (CRGO), stainless steel long & flat products, titanium alloys, and coated steels.
• Objective –
  • Promote domestic manufacturing of high-grade, value-added specialty steel
  • Reduce reliance on imports, especially for sectors like defence, aerospace, power, and infrastructure
• Highlights of the Third Round (PLI 1.2)
  • Application Window – Open for 30 days via online portal from launch date.
  • Eligibility – Indian-registered companies involved in end-to-end manufacturing of notified steel products.
  • Product Coverage – Includes 22 sub-categories across 5 segments - Strategic steel grades, Commercial grades (Categories 1 and 2), and Coated/wire products.
  • Incentive Structure – 4% to 15% of incremental sales, depending upon product type and production year.
  • Incentive Period – Valid for 5 years starting FY 2025–26, with incentive disbursal begins in FY 2026–27.
  • Update – Base year revised from 2019–20 to 2024–25 to align with current pricing trends.

Reference

PIB |PLI scheme for Specialty Steel (PLI scheme 1.2)