In its new phase, the scheme has modified investment and capacity thresholds to encourage MSMEs and downstream units to take part, while also updating the base year for prices from 2019–20 to 2024–25 to align incentives with current production and price levels. The changes mark a strategic shift aimed at deepening the manufacturing ecosystem for value-added and high-grade steels.
The PLI 1.2 round will target advanced and emerging categories such as super alloys, CRGO, stainless steel long and flat products, titanium alloys, and coated steels among others.
Applications have been invited through the portal
https://plimos.mecon.co.in within 30 days beginning November 4. Companies registered in India and engaged in end-to-end manufacturing of the notified products are eligible to apply. The third round covers 22 product sub-categories across five broad segments, including strategic and commercial grades as well as coated and wire products.
Under the revised structure, incentives will range from 4 per cent to 15 per cent of incremental sales, depending on the product and year of production. Benefits will be available for up to five years starting FY26, with disbursal commencing in FY27.
The PLI scheme on speciality steel, approved by the Cabinet in July 2021, has so far attracted investment commitments of ₹43,874 crore in the first two rounds and is expected to add 14.3 million tonnes of new specialty steel capacity. As of September 2025, companies participating in the first two rounds have already invested ₹22,973 crore, according to the steel ministry.
The new round of PLI is “a bold step to shift India’s industrial base from basic steel to high value, high grade specialty steels,” Kumaraswamy said. “This round also aims to provide fresh opportunities for both existing and new players, including MSMEs, who have expanded or upgraded their investment plans for the earlier rounds.”
 "H D Kumaraswamy (Photo: X/@hd_kumaraswamy)")