Steel Ministry Signs Rs 11,887 Crore MoUs Under PLI 1.2 Scheme

The Ministry of Steel entered into MoUs with 55 companies on 85 projects in the third round of the Production-Linked Incentive (PLI) scheme of specialty steel. 

They invested Rs. 11,887 crore and will add 8.7million tonnes of capacity, boosting the production of steel in India. 

The MoUs were also signed in the presence of Union Minister of Heavy Industries and Steel, H.D.Kumaraswamy, and State Minister, Bhupathi Raju Srinivasa Varma, leading to the official introduction of PLI Scheme 1.2. 

This new round, which was launched last November, is on specialty steel grades in which India is still import dependent like in the strategy, electrical and high end downstream applications. It has 22 product sub-categories in four major segments and an incentive rate of 4-15 per cent in five years starting FY26. 

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According to Minister Kumaraswamy, PLI 1.2 is a key milestone to a globally competitive specialty steel ecosystem in India. He further said that the plan will seal the loopholes that exist that lead to increased domestic production, less foreign exchange, and make in India a reliable global supplier of steel. 

Steel Secretary S. Poundrik gave explanations of amendments to the design of the scheme, such as the reduction of the investment levels and incentive payments based on their real production. He pointed out that the success of the scheme requires timely investment, commissioning of projects, and continuous production.