Production Linked Incentive (PLI) Scheme (PLI 1.2) for Specialty Steel
Ministry of Steel · Central government
PLI for Specialty Steel funds incremental production and sales to boost domestic manufacturing and value addition in India.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Not specified
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Released against milestones
About this scheme
The Production Linked Incentive (PLI) Specialty Steel Scheme, administered by the Ministry of Steel, Government of India, offers performance-linked financial incentives tied to incremental production and sales of designated specialty steel products. Its stated aim is to drive investment in advanced plant, machinery, and technology, while promoting domestic value addition by requiring input materials to be melted and poured within India.
The scheme operates through a structured framework involving a Project Management Agency (PMA) and an Empowered Committee, which together manage application, project oversight, approval, incentive calculation, and disbursement. This mechanism is intended to support the growth of a self-reliant specialty steel sector, with potential benefits including increased employment and technological progress.
Who can apply
- Eligible business forms
- Private limited company
- Udyam registration
- Not specified
- MSME registration
- Not specified
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Not restricted
- Must be a company registered in India under the Companies Act, 2013. - Must be engaged in end-to-end domestic manufacturing of identified specialty steel grades, with input material melted and poured within India. - Up to 20% of total value addition may be undertaken through third parties; however, only the company manufacturing the eligible end product sub-category may claim the incentive. - Net worth of the applicant company, including group companies, must not be less than 30% of total committed investment, based on audited financial statements of the immediately preceding financial year. - For new companies or group companies incorporated after 31/03/2025, net worth must be at least 30% of total committed investment prior to the date of application submission. - Must meet prescribed minimum threshold values for incremental production, capacity, and investment as specified under the scheme guidelines. - Only investments classified as eligible under the prescribed provisions shall be considered for calculating investment. - Must not be classified as NPA, wilful defaulter, or fraud, and must have no insolvency proceedings admitted before NCLT. - Projects that have received or are expected to receive incentives under previous rounds of the PLI Scheme for Specialty Steel are not eligible.
How to apply
- Go to the official PLI portal at https://plimos.mecon.co.in/ords/plimos/r/102/login?session=11655018078065 and open the online registration page. - Fill in company particulars: Company Name, Corporate Identification Number (CIN), and Incorporation Date. - Furnish the authorised contact person’s details, covering name, designation, mobile number, and email ID. - Set and confirm a password that meets the prescribed criteria. - Key in the captcha code and submit the registration form. - Once submitted successfully, a registration unique to the CIN is generated; the system permits only one registration per CIN. - All subsequent communications and logins will use the registered mobile number and email ID. - Sign in with the registered CIN and password to continue the application. - File the application within 30 days of the PLI Scheme 1.2 launch date. - The submission must be made by an authorised signatory who holds due authority from the Board of Directors or the Managing Director.
How applications are assessed
The Project Management Agency (PMA) first filters applications to confirm that each one satisfies the eligibility conditions, such as company registration, net worth thresholds, and compliance with manufacturing norms. The PMA then checks the proposed investments, production capacities, and incremental sales targets against the scheme’s defined limits.
After this evaluation, the Empowered Committee examines the PMA’s recommendations and grants final approval for qualifying projects, including the committed investment and production goals. Incentive payments are released only after verifying the company’s actual incremental production and sales during the five-year incentive period.
Frequently asked questions
What is the primary objective of the PLI Specialty Steel Scheme?
The scheme incentivises incremental production of notified specialty steel products to boost domestic manufacturing, while encouraging investment in plant, machinery, and technology, and supporting domestic value addition and employment generation.
Who is eligible to apply for this scheme?
Applicants must be companies incorporated in India under the Companies Act, 2013, involved in complete domestic production of specified specialty steel grades. They are also required to satisfy net worth conditions linked to their pledged investment and meet set minimum limits for additional output, capacity, and capital.
What kind of financial benefits can applicants expect?
Incentives are calculated on incremental sales of manufactured specialty steel products, with eligibility determined through a structured mechanism involving a Project Management Agency and an Empowered Committee. These incentives are available for a maximum of five years, starting from Fiscal Year 2025-26.
Are there any restrictions on existing projects or other scheme benefits?
Projects that have already received or are expected to receive incentives under earlier rounds of the PLI Scheme for Specialty Steel are ineligible for the current round (PLI 1.2). Companies may, however, claim benefits under other schemes, provided the same investment and sales are not counted twice for incentives under different PLI schemes.
How is the application submitted?
Applicants must register on the official PLI portal with company and authorised contact person details, then log in using their CIN and password to complete and submit the detailed application form. The form must be submitted by an authorised signatory within 30 days of the scheme's launch date.
What is the base year for calculations under the scheme?
Financial Year 2024–25 serves as the base year for the scheme’s calculations. Incremental production and sales are measured against this period to decide eligibility and incentive amounts.
Sectors
- Manufacturing Industrial
- Specialty Steel
- Manufacturing
- Production Linked Incentive
- Metal Industry
- Government Scheme
Details last verified on 3 August 2026. Source: the issuer's published information.