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

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.

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

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.
2. 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.
3. 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.
4. 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.
5. The applicant must meet the prescribed minimum threshold values for incremental production, capacity, and investment as specified under the scheme guidelines.
6. Only those investments classified as eligible under the prescribed provisions shall be considered for the purpose of calculating investment.
7. 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.
8. 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.
9. 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.

Online

Step 1 : The applicant shall access the official PLI portal and open the online registration page.
Step 2 : The applicant shall enter company details, including Company Name, Corporate Identification Number (CIN), and Incorporation Date.
Step 3 : The applicant shall provide details of the authorized contact person, including name, designation, mobile number, and email ID.
Step 4 : The applicant shall create and confirm a password as per the prescribed requirements.
Step 5 : The applicant shall enter the captcha code and submit the registration form.
Step 6 : Upon successful submission, a unique registration linked to the CIN shall be created, and only one registration per CIN shall be permitted.
Step 7 : The registered mobile number and email ID shall be used for all future communications and login purposes.
Step 8 : The applicant shall log in using the registered CIN and password to proceed with the application process.
Note Points

1. The applicant must be a company registered in India under the Companies Act, 2013, and must not be classified as NPA, wilful defaulter, or fraud, and should have no insolvency proceedings admitted before NCLT.
2. The application shall be submitted within 30 days from the date of launch of the PLI Scheme 1.2.
3. The application must be submitted by an authorized signatory duly empowered by the Board of Directors or Managing Director.
4. Financial Year 2024–25 shall be considered as the base year for calculations under the scheme.
5. Capacity enhancement may be undertaken through capacity addition (new units) or capacity augmentation (existing units).
6. Incremental production shall be calculated based on production derived from sales compared to the corresponding previous period.
7. Limiting investment shall be 80% of the committed investment and must be achieved at the time of incentive claim.
8. Incentives shall be provided for a maximum period of five years commencing from FY 2025–26.