Ministry of Steel Signs MoUs with 55 Companies Under PLI Scheme 1.2: ₹236 Crore Incentives Disbursed

The Ministry of Steel formalized partnerships with 55 companies for 85 projects under Production Linked Incentive Scheme 1.2 launched on November 4, 2025. PLI 1.2 covers 22 product sub-categories under four product categories: Steel Grades for Strategic Sector, Commercial Grades Category 1, Commercial Grades Category 2, and Coated & Wire Products. The scheme offers differentiated incentive rates ranging from 4% to 15% for five-year period commencing from FY 2025-26, with incentive disbursement starting from FY 2026-27. An incentive amount of ₹236 crore has been disbursed to participating companies as of the announcement. The PLI scheme for specialty steel aims to boost domestic manufacturing of high-value steel products including automotive grade steel, electrical steel, specialty alloy steel, high-strength low-alloy steel, and corrosion-resistant steel grades. These products are critical for automobile manufacturing, power generation and transmission, defense equipment, oil and gas pipelines, and infrastructure projects. By incentivizing advanced steel production, the scheme reduces import dependence on specialized steel grades, enhances value addition in domestic steel industry, creates employment in metallurgical and manufacturing sectors, and strengthens India's position as quality steel producer in global markets supporting strategic industries and infrastructure development.