Production Linked Incentive (PLI) Scheme (PLI 1.2) for Specialty Steel
Ministry of Steel · Central government
The PLI Scheme for Specialty Steel funds Indian specialty steel makers with incentives on incremental production and sales.
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 Ministry of Steel, Government of India, administers the Production Linked Incentive (PLI) Specialty Steel Scheme. Under this scheme, financial incentives are disbursed according to performance, calculated on the incremental production and sales of identified specialty steel products.
The scheme's core aim is to draw substantial investment into advanced plant, machinery and technology, thereby building a self-reliant specialty steel sector in the country. It also stresses domestic value addition, requiring that input materials be melted and poured within India.
Applications, project management, approvals, incentive calculation and disbursement are handled through a structured mechanism that includes a Project Management Agency (PMA) and an Empowered Committee, which keeps the process transparent.
The scheme supports India's positioning as a global hub for specialty steel manufacturing, which in turn is expected to generate employment and drive technological advancement in the sector.
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
- Company registered in India under the Companies Act, 2013. - Undertakes end-to-end domestic manufacturing of identified specialty steel grades, with input material melted and poured within the country. - Third-party value addition capped at 20% of total value addition; incentive claimable only by the company manufacturing the eligible end product sub-category. - Net worth of the applicant company, including group companies, at least 30% of total committed investment, per audited financial statements of the immediately preceding financial year. - For new companies or group companies incorporated after 31/03/2025, net worth of at least 30% of total committed investment before the date of application submission. - Meets prescribed minimum threshold values for incremental production, capacity, and investment under the scheme guidelines. - Only investments classified as eligible under the prescribed provisions count towards calculation of investment. - Not classified as NPA, wilful defaulter, or fraud; 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
1. Open the online registration page on the official PLI portal at https://plimos.mecon.co.in/ords/plimos/r/102/login?session=11655018078065. 2. Fill in the company's particulars — Company Name, Corporate Identification Number (CIN) and Incorporation Date. 3. Furnish the details of the authorised contact person: name, designation, mobile number and email ID. 4. Set a password meeting the prescribed requirements and confirm it. 5. Type in the captcha code and submit the registration form. 6. Once the form is submitted successfully, a unique registration tied to the CIN is generated. Only one registration is allowed against each CIN. 7. All subsequent correspondence and logins will take place through the registered mobile number and email ID. 8. To carry the application forward, log in with the registered CIN and password. 9. The application has to be filed within 30 days of the launch date of PLI Scheme 1.2. 10. An authorised signatory, duly empowered by the Board of Directors or the Managing Director, must submit the application.
How applications are assessed
The Project Management Agency (PMA) carries out the first-level screening of applications, checking that eligibility conditions are satisfied — company registration, net worth requirements and compliance with manufacturing guidelines. It also assesses the proposed investments, production capacities and incremental sales targets against the thresholds laid down under the scheme.
The Empowered Committee then examines the PMA's recommendations and grants final approval covering the eligible projects, their committed investment and production targets. Disbursement of the incentive ultimately depends on verification of the actual incremental production and sales the company records during the specified five-year incentive period.
Frequently asked questions
What is the primary objective of the PLI Specialty Steel Scheme?
The scheme offers incentives on additional output of notified specialty steel products, with the goals of boosting domestic manufacturing, drawing investment into plant, machinery and technology, and increasing domestic value addition and employment.
Who is eligible to apply for this scheme?
Applicants qualify if they are companies incorporated in India under the Companies Act, 2013 and carry out end-to-end domestic manufacturing of the notified specialty steel grades. They must additionally satisfy defined net worth requirements in relation to their committed investment, along with the prescribed minimum thresholds for incremental production, capacity and investment.
What kind of financial benefits can applicants expect?
Eligible companies receive incentives tied to their incremental sales of manufactured specialty steel products, calculated through a structured mechanism involving a Project Management Agency and an Empowered Committee. These incentives run 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 received or expect to receive incentives under earlier rounds of the PLI Scheme for Specialty Steel cannot apply for the current round, PLI 1.2. Benefits under other schemes remain available, as long as the same investment and sales are not counted twice across different PLI schemes.
How is the application submitted?
Registration and submission take place entirely online through the official PLI portal: after signing up with company and authorised contact person details, applicants log in using their CIN and password to complete and submit the detailed form, which an authorised signatory must file within 30 days of the scheme's launch date.
What is the base year for calculations under the scheme?
For the scheme's calculations, the base year is Financial Year 2024–25, against which incremental production and sales are measured to decide eligibility and incentive amounts.
Sectors
- Manufacturing Industrial
- Specialty Steel
- Manufacturing
- Production Linked Incentive
- Metal Industry
- Government Scheme
Details last verified on 15 September 2026. Source: the issuer's published information.