The India launches third round of PLI scheme for Specialty Steel marks another strong step toward the nation’s Atmanirbhar Bharat vision. The government will officially launch this round on Tuesday, led by Union Minister H.D. Kumaraswamy, along with senior officials and industry leaders. The initiative aims to strengthen India’s position as a global hub for advanced steel manufacturing.
Approved in July 2021, the PLI scheme has a total budget of ₹6,322 crore. It encourages domestic and foreign companies to invest in the production of high-grade steel products. So far, the scheme has attracted ₹43,874 crore in committed investments, out of which ₹22,973 crore has already been used. More than 13,000 jobs have been created through the first two rounds, showing the scheme’s positive impact on employment and industry growth.
The program covers 22 steel product sub-categories, including super alloys, CRGO steel, alloy forgings, stainless steel, titanium alloys, and coated steels. These products are essential for sectors like defense, power, aerospace, and infrastructure. The incentive rates range between 4% and 15% for five years, starting from FY 2025-26, with disbursal beginning in FY 2026-27.
The government has updated the base year for pricing to FY 2024-25, reflecting current market realities. This adjustment will help manufacturers align with global demand and technology standards. The scheme also promotes domestic value addition, reducing India’s dependence on imports and boosting exports in high-value steel categories.
India is targeting a crude steel production capacity of 300 million tonnes by 2030. With domestic steel demand growing by 11-13% annually, this goal appears achievable. Large infrastructure projects like highways, bridges, and railways continue to drive this demand, making the steel sector a vital part of India’s economic growth.
Interestingly, steel output rose by 14.1% in September 2023 compared to the same period last year. Experts attribute this growth to government-led projects under initiatives such as Make in India and National Infrastructure Pipeline. These programs not only expand the market but also generate opportunities for technology innovation and skilled labor.
The Ministry of Steel expects the third round of the PLI scheme to attract even more investors. Many domestic and international companies are preparing to submit proposals for new plants, product diversification, and advanced manufacturing technology. The industry also anticipates greater collaboration with global partners to enhance India’s competitiveness in specialty steel production.
Moreover, the scheme aligns with India’s sustainability goals. The government is encouraging new steel plants to adopt green technologies, such as hydrogen-based steelmaking and energy-efficient furnaces. This approach will help India reduce carbon emissions while boosting industrial efficiency.
India launches third round of PLI scheme initiative represents more than just an industrial policy, it reflects India’s determination to achieve self-reliance, economic strength, and technological advancement. With continued investments and innovation, the country is on track to become a major player in the global steel market.
