Union Minister HD Kumaraswamy launches the third phase of the scheme, marking a major push toward India’s goal of becoming a global hub for advanced steel manufacturing
New Delhi
The Government of India on Tuesday launched the Third Round (PLI 1.2) of the Production-linked Incentive (PLI) scheme for specialty steel, furthering its commitment to make India a global leader in advanced steel manufacturing.
Announcing its roll out, Union Minister for Steel and Heavy Industries HD Kumaraswamy described the initiative as a major milestone in India’s journey toward industrial self-reliance and global competitiveness.
“The PLI scheme stands as a shining pillar of the ‘Atmanirbhar Bharat Abhiyan’, a mission to make India self-reliant, globally competitive, and technologically advanced in every sphere of industrial production,” the Minister said.
A transformative policy for steel sector
Approved by the Union Cabinet in July 2021, the PLI scheme for specialty steel was introduced with a total outlay of ₹6,322 crore to encourage production of high-value, high-grade steels used in sectors such as defence, aerospace, energy, automobiles, and infrastructure.
Since its inception, the scheme has attracted investment commitments worth ₹43,874 crore, created 30,760 direct jobs, and is expected to add 14.3 million tonnes of new specialty steel capacity in India.
According to the latest government data, as of September 2025, companies participating in the first two rounds have already invested ₹22,973 crore and generated 13,284 jobs.
“The response to the first two rounds has been highly encouraging. The success demonstrates the strength of India’s reform-oriented and industry-driven policy framework,” Kumaraswamy said.
PLI 1.2: A push for advanced steel categories
The newly-launched PLI 1.2 round is aimed at attracting fresh investments in advanced and emerging categories such as super alloys, CRGO steel, stainless steel long and flat products, titanium alloys, and coated steels, materials that are essential for next-generation industrial and defence applications.
The Union Minister said the third round will also open up new avenues for Micro, Small and Medium Enterprises (MSMEs) and existing producers who have expanded or upgraded their capacities following the earlier phases. “PLI 1.2 is designed to accelerate India’s journey toward becoming a global hub for high-grade steel production.The new phase would make Indian steel manufacturers more competitive on the global stage,” he said.
Building a global manufacturing hub
With India steadily emerging as one of the world’s top steel producers, the PLI scheme is expected to consolidate the country’s role in the global value chain. The focus will be on export-led growth, technological innovation, and sustainability in production.
“Through this initiative, we aim not just to produce steel for India, but to supply the world from India,” he noted.
Toward a ‘Viksit Bharat’ by 2047
The minister reiterated that the government remains committed to building a resilient, self-reliant, and globally competitive steel industry. The PLI 1.2 round would play a vital role in achieving the goals of Atmanirbhar Bharat, Viksit Bharat by 2047, and India’s Net Zero 2070 target.
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The motive
- New phase to boost investment, innovation, and high-grade steel production in India.
- PLI 1.2 to strengthen India’s role in global value chain, aid ‘Viksit Bharat 2047’ vision.
- Over ₹43,800 crore committed; nearly 31,000 jobs generated under earlier rounds
