Steel ministry signs ₹11,887 crore MoUs with companies under PLI 1.2

The Steel Ministry signed MoUs with 55 companies for 85 projects under PLI Scheme 1.2, committing Rs 13,203 crore in investments and 8.7 million tonnes of capacity addition

The Ministry of Steel on Monday signed Memoranda of Understanding (MoUs) with 55 companies for 85 projects under the third round of the Production-Linked Incentive (PLI) scheme for specialty steel. The firms committed investments worth ₹11,887 crore and capacity addition of 8.7 million tonnes.

 

The MoUs were signed at Vigyan Bhawan in the presence of Union Minister of Heavy Industries and Steel, H D Kumaraswamy, and his minister of state (MoS) Bhupathi Raju Srinivasa Varma, marking the formal rollout of PLI Scheme 1.2, which was launched last November.

 

PLI 1.2 targets specialty steel grades where India remains import dependent, particularly for strategic, electrical, and high-end downstream applications. The round covers 22 product sub-categories across four segments, including steel grades for strategic sectors and coated and wire products, with incentive rates ranging between 4 per cent and 15 per cent for five years starting 2025-2026 (FY26).

   

Kumaraswamy said PLI 1.2 was a decisive step towards building a resilient and globally competitive specialty steel ecosystem and the scheme would address the structural gap by incentivising domestic production, conserving foreign exchange, and positioning India as a reliable global steel supplier.

 

The minister also said the achievements under earlier rounds of the PLI scheme further reinforced the policy’s effectiveness. “Across PLI 1.0 and 1.1, committed investments of ₹43,874 crore have already translated into substantial on-ground progress, including significant capacity creation and employment generation. PLI 1.2 builds on this momentum, deepening the domestic steel ecosystem and strengthening the entire value chain,” he said.

 

Addressing the event, Steel Secretary, Sandeep Poundrik, said the scheme’s design had been recalibrated based on learnings from earlier rounds, including lower investment thresholds, removal of mandatory annual production targets, and incentive payouts linked to actual incremental production. The base year had also been revised to FY25 to better reflect market realities.

 

“From the government side, facilitation remains a priority. Issues relating to approvals, visas for foreign experts, coordination with state governments, and inter-ministerial matters are being addressed through structured engagement,” Poundrik said.

 

The scheme’s success ultimately depends on timely investment, commissioning and sustained production by participating companies, he said. “Industry is expected to adhere to MoU commitments, engage early with end-users, and focus on quality, consistency, and cost competitiveness,” Poundrik said, adding that PLI 1.2 is designed as an enabler, not just an incentive.