Production of good quality steel will increase in the country. (file photo)
The government on Tuesday launched the third phase of the Production Linked Incentive Scheme (PLI Scheme) for Specialty Steel. The objective of this scheme is to increase steel production in the country and reduce imports. Union Steel Minister HD Kumaraswamy launched this third phase scheme named PLI 1.2. In the earlier two phases, an investment of about Rs 44,000 crore was promised.
The Union Minister said that the Cabinet had approved this scheme in July 2021 so that the production of good quality and special grade steel in the country can be increased, which is used in sectors like defence, aerospace, energy, automobile and infrastructure. The total amount of this scheme is Rs 6,322 crore and its aim is to increase specialty steel capacity by about 2.6 crore tonnes in the coming years.
Kumaraswamy Minister said, “So far the scheme has received investment promises of about Rs 43,874 crore, which is expected to add 14.3 million tonnes of new steel capacity in the country.” According to the data till September 2025, the companies involved in the first two phases have invested Rs 22,973 crore and 13,284 people have got employment. The minister said that the response to the first two phases has been very good, which proves that India's policies are reformist and pro-industry.
The Union Minister said that with PLI 1.2, India will move rapidly towards becoming a global center of good quality steel production. In this phase, new investments will now be made in such products which are essential for future industry and defense needs, such as super alloy, CRGO steel, stainless steel, titanium alloy and coated steel. The scheme will also open new opportunities for old and new investors, especially for MSMEs who have expanded or improved their schemes after the previous rounds.
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