India bets big on steel as PLI 3.0 gets rolling
India will introduce the third phase of its production-linked incentive program for specialty steel on Tuesday, with Heavy Industries Minister H.D. Kumaraswamy leading the ceremony. The initiative forms part of the broader Atmanirbhar Bharat self-reliance campaign and targets advanced steel manufacturing development.
Federal authorities approved the program in July 2021, with 6,322 crore rupees allocated to establish the nation as a leading producer of premium steel varieties. Two earlier rounds have generated committed capital of 43,874 crore rupees, with 22,973 crore rupees already deployed and more than 13,000 positions created. The program encompasses 22 product classifications such as super alloys, grain-oriented electrical steel, alloy forgings, stainless steel products, titanium alloys and coated materials. Financial incentives range from 4 percent to 15 percent over five years beginning in fiscal 2025-26.
Officials anticipate reaching 300 million tons of crude steel production capacity by 2030 as domestic consumption expands 11 percent to 13 percent annually, driven by major public works projects. September output jumped 14.1 percent compared with the prior year period. The program encourages additional manufacturing and capital spending in strategic categories to boost domestic value creation and decrease reliance on imports for defense, power generation, aviation and construction applications.
