H.D. Kumaraswamy Signs ₹11,887 Crore Steel Pact to Boost Specialty Manufacturing

The Government of India launched the Production Linked Incentive (PLI) Scheme 1.2 for Specialty Steel on Sunday, aiming to strengthen high-value manufacturing and reduce import dependence in critical steel grades. The launch ceremony at Vigyan Bhawan in New Delhi saw the signing of Memoranda of Understanding with industry participants.

Union Minister for Steel and Heavy Industries H.D. Kumaraswamy described PLI 1.2 as a decisive step towards building a resilient and globally competitive specialty steel ecosystem. The scheme aligns with Prime Minister Narendra Modi's vision for advancing the Make in India and Aatmanirbhar Bharat initiatives through domestic capacity creation in advanced steel products.

Under PLI Scheme 1.2, 85 MoUs have been signed with 55 companies, representing committed investments of ₹11,887 crore. These projects are expected to add 8.7 million tonnes of specialty steel capacity by FY 2031, expanding India's capabilities in segments including electrical steel, alloy and stainless steels, coated products, and grades required for strategic sectors.

The third round of the PLI Scheme responds to industry demand for sustained capacity expansion in specialty steel, which serves sectors such as automobiles, railways, defence, electrical equipment, and aerospace. The scheme offers incentive rates ranging from 4% to 15% over five years to promote investment, technology upgradation, and value addition.

"PLI 1.2 seeks to address structural gaps by incentivising domestic production, conserving foreign exchange, and positioning India as a reliable global supplier of advanced steel," H.D. Kumaraswamy said.

The minister noted that earlier rounds of the PLI Scheme have demonstrated policy effectiveness, with committed investments of ₹43,874 crore across PLI 1.0 and 1.1 resulting in capacity creation and employment generation. PLI 1.2 builds on this progress to deepen the domestic steel ecosystem and strengthen the value chain.

H.D. Kumaraswamy urged participating companies to implement projects within scheduled timelines and maximize the use of indigenous technologies and inputs. He affirmed the government's commitment to facilitation and timely resolution of operational issues, stating that PLI 1.2's success will be pivotal in India's journey towards becoming a global hub for specialty steel manufacturing.