Production Linked Incentive (PLI) Scheme (PLI 1.2) for Specialty Steel

About This Scheme

The Production Linked Incentive (PLI) Specialty Steel Scheme under the Ministry of Steel, Government of India, aims to enhance domestic manufacturing by providing incentives on the incremental production of notified specialty steel products. The scheme defines eligibility based on incremental investment and incremental sales over a baseline. It includes provisions for application, project management, approval, incentive calculation, and disbursement through a structured mechanism involving the Project Management Agency (PMA) and the Empowered Committee.

Eligibility

1. The applicant must be a company registered in India under the Companies Act, 2013, engaged in the manufacture of identified specialty steel grades, ensuring end-to-end domestic manufacturing wherein input material is melted and poured within the country. 1. A maximum of 20% of the total value addition may be undertaken through third parties; however, the incentive shall be claimed only by the company manufacturing the eligible end product sub-category. 1. The net worth of the applicant company, including that of its group companies, shall not be less than 30% of the total committed investment, based on audited financial statements of the immediately preceding financial year. 1. In the case of new companies or group companies incorporated after 31/03/2025, the net worth shall be at least 30% of the total committed investment prior to the date of application submission.Where an applicant applies for multiple product sub-categories, the net worth requirement shall be evaluated with reference to the total committed investment across all applied sub-categories. 1. The applicant must meet the prescribed minimum threshold values for incremental production, capacity, and investment as specified under the scheme guidelines. 1. Only those investments classified as eligible under the prescribed provisions shall be considered for the purpose of calculating investment. 1. An eligible company may avail benefits under other schemes, subject to applicable provisions; however, the same investment and sales shall not be considered for incentives under other PLI schemes. 1. Companies availing benefits under this scheme are not restricted from applying to PLI schemes of other Ministries or Departments for products not covered under this scheme. 1. Projects that have received or are expected to receive incentives under previous rounds of the PLI Scheme for Specialty Steel shall not be eligible to participate in the current round.

Benefits

1. Incentive on incremental sales of manufactured specialty steel 1. Encouragement for investment in plant, machinery, and technology 1. Promotion of domestic value addition 1. Support for employment generation 1. Development of advanced steel manufacturing capabilities

How to Apply

Where This Comes From

This scheme was sourced from myScheme, the Government of India's official Central+State scheme discovery portal, and reviewed by an editor before publishing. Use the button above to read the full details and apply directly on the official source.