Ministry of Steel Signs MoUs for 85 Specialty Steel Projects Involving Investment of ₹11,887 Crore

Newdelhi:9/2/26:The Ministry of Steel signed Memorandum of Understanding (MoUs) for 85 projects of 55 companies under the Production-Linked Incentive (PLI) Scheme 1.2 (Third round) for Specialty Steel on 09.02.2026 at Vigyan Bhawan, New Delhi, in the august presence of Shri H.D. Kumaraswamy, Minister of Steel and Heavy Industries and officials from the Ministry of Steel. The launch of PLI 1.2 marks a significant milestone towards achieving the government’s vision of “Make in India.”

Participating companies in this round have committed an investment of ₹11,887 crore and a committed capacity of 8.7 million tonnes in downstream steel and alloy making. Complementing the industry for their active participation, Shri H.D. Kumaraswamy mentioned that Production Linked Incentive (PLI) Scheme is a key reform of the Government of India aimed at strengthening domestic manufacturing and enhancing global competitiveness. He said that though India has already made notable strides in specialty and alloy steel manufacturing, with these new investments, India will further deepen its capabilities, reduce import dependence, conserve foreign exchange, and emerge as a reliable supplier of high-value steel to the world.

Shri Sandeep Poundrik, Secretary ministry of Steel emphasized that the scheme’s success depends on timely investment, commissioning and sustained production by participating companies and mentioned that the Ministry would extend all necessary support to the participating companies.

The Production-Linked Incentive (PLI) Scheme for Specialty Steel was launched in July 2021 to promote manufacturing, attract capital investment and support technology up-gradation in downstream segment of steel sector. Under PLI 1.0, the committed outcomes include ₹27,106 crore of investment, 14,760 direct jobs, and 7.9 million tonnes of production capacity. PLI 1.1, launched on 06 January 2025, is expected to attract investment of about ₹17,000 crore, generate around 16,000 jobs, and add 6.4 million tonnes of production capacity.

An incentive of ₹236 crore has been disbursed to participating companies so far in the scheme.

PLI 1.2 was launched on 04 November 2025, covering 22 product sub-categories under four product categories, namely: (i) Steel Grades for Strategic Sector, (ii) Commercial Grades – Category 1, (iii) Commercial Grades – Category 2, and (iv) Coated & Wire Products. The scheme offers incentive rates ranging from 4% to 15% for a period of five years, commencing from FY 2025–26, with incentive disbursement starting from FY 2026–27.