Ministry of Steel
India Expands PLI Push for Specialty Steel Manufacturing: India has accelerated its industrial policy thrust under the Production-Linked Incentive Scheme 1.2 for Specialty Steel. Recently, 85 projects were formalized through Memorandums of Understanding with 55 companies under the third round of the scheme.
This development marks a strategic shift towards high-grade steel production and deeper value addition within the domestic steel ecosystem.
Genesis and Policy Background
The PLI Scheme for Specialty Steel was launched in 2021 by the Ministry of Steel. It forms part of the broader Production-Linked Incentive framework introduced by the Government of India to strengthen manufacturing competitiveness.
The scheme incentivizes companies based on incremental production of advanced steel grades. The goal is not just output expansion but technological upgrading of Indian steel plants.
Static GK fact: India is the second-largest steel producer in the world, after China, according to global steel production rankings.
Objective and Strategic Importance
The core objective is to promote domestic manufacturing of special steel grades, which are largely imported. These high-end products are crucial for sectors such as defence, railways, automobiles, renewable energy, and infrastructure.
By encouraging advanced steel manufacturing, the scheme aims to move the Indian steel industry up the global value chain. It also supports the vision of Atmanirbhar Bharat by reducing import dependency in critical materials.
The focus is on improving product quality, research capability, and export potential.
Focus Areas under PLI 1.2
Under PLI 1.2, incentives are directed towards emerging and advanced steel segments. These include:
- Super alloys used in aerospace and defence
- Cold-Rolled Grain-Oriented (CRGO) steel, critical for transformers
- Stainless steel long and flat products
- Titanium alloys
- Coated steel products
These segments require high technology and precision manufacturing standards. Domestic capability in these areas enhances industrial resilience.
Static GK Tip: CRGO steel is primarily used in power transformers because of its superior magnetic properties.
Investment and Industry Response
The signing of 85 MoUs with 55 companies under the third round reflects strong industry participation. The scheme is expected to attract significant capital investment and generate employment across the steel value chain.
The incentive mechanism rewards incremental production over a base year. This ensures that only genuine capacity expansion and technological upgrading receive financial benefits.
India’s steel consumption is closely linked with infrastructure growth. Therefore, strengthening specialty steel manufacturing also supports national development projects.
Static GK fact: The headquarters of the Ministry of Steel is located in New Delhi.
Broader Economic Impact
Specialty steel production contributes to higher export earnings due to its premium pricing in global markets. It also integrates Indian manufacturers into global supply chains.
The scheme complements other industrial policies such as Make in India and the National Steel Policy, which targets enhanced per capita steel consumption.
By promoting advanced steel categories, India is positioning itself as a technology-driven manufacturing hub rather than a raw material exporter.
Static Usthadian Current Affairs Table
India Expands PLI Push for Specialty Steel Manufacturing:
| Topic | Detail |
| Announcement Date | 09 February 2026 |
| Key Focus | Integrated Farming Systems for small farmers |
| Target Group | 89.4% small and marginal farmers |
| Core Components | Crops, livestock, fisheries, poultry, apiary |
| Major Scheme | National Mission for Sustainable Agriculture |
| Supporting Scheme | Rashtriya Krishi Vikas Yojana |
| Organic Link | Paramparagat Krishi Vikas Yojana |
| Research Body | ICAR-AICRP on IFS |
| Coverage | Models across 25 states |
| Objective | Income security and resource efficiency |
