Ministry of Steel Signs MoUs for 85 Specialty Steel Projects Worth ₹11,887 Crore

New Delhi, February 9, 2026: India’s push to become a global hub for high-value steel manufacturing received a major boost as the Ministry of Steel signed Memorandums of Understanding (MoUs) for 85 specialty steel projects involving 55 companies, with a total investment commitment of ₹11,887 crore.

The MoUs were signed under the Production-Linked Incentive (PLI) Scheme 1.2 for Specialty Steel, marking the third round of the scheme. The agreements were formalised at a ceremony held in New Delhi in the presence of senior government officials and industry representatives.

Massive Capacity Addition Planned

Companies participating in this round have committed to setting up 8.7 million tonnes of downstream and alloy steel capacity, significantly strengthening India’s specialty steel ecosystem. The projects span advanced steel grades used in strategic sectors, infrastructure, automotive, engineering, and export-oriented industries.

The initiative is aligned with the government’s broader vision of “Make in India”, aimed at reducing import dependence and positioning India as a reliable supplier of high-grade steel to global markets.

PLI Scheme Driving Manufacturing Growth

Addressing the event, senior officials highlighted that the PLI Scheme is a cornerstone reform designed to boost domestic manufacturing, encourage technology upgradation, and enhance India’s competitiveness in the global steel value chain.

With the addition of PLI 1.2 projects, India is expected to:

• Reduce reliance on imported specialty and alloy steel

• Save foreign exchange

• Strengthen supply chains for strategic and high-end applications

• Create long-term industrial and employment opportunities

Strong Track Record of PLI for Specialty Steel

The Specialty Steel PLI Scheme was first launched in July 2021 and has seen strong industry participation across multiple rounds:

• PLI 1.0:

  • Investment commitment: ₹27,106 crore

  • Direct employment potential: 14,760 jobs

  • Capacity addition: 7.9 million tonnes

• PLI 1.1 (launched January 2025):

  • Expected investment: ~₹17,000 crore

  • Employment generation: ~16,000 jobs

  • Capacity addition: 6.4 million tonnes

So far, ₹236 crore has already been disbursed as incentives to companies under the scheme.

Key Features of PLI Scheme 1.2

Launched in November 2025, PLI Scheme 1.2 covers 22 product sub-categories across four major segments:

1. Steel grades for strategic sectors

2. Commercial grades – Category 1

3. Commercial grades – Category 2

4. Coated steel and wire products

The scheme offers incentives ranging from 4% to 15% for a period of five years, starting from FY 2025–26, with incentive payouts beginning in FY 2026–27.

Outlook: India’s Specialty Steel Ambition Gains Momentum

With fresh investments and capacity commitments under PLI 1.2, India’s specialty steel industry is entering a phase of accelerated expansion. The focus on value-added steel, advanced alloys, and downstream manufacturing is expected to play a crucial role in achieving long-term industrial growth and export competitiveness.