The government has launched the third phase of its production-linked incentive (PLI) scheme for specialty steel, aiming to attract investments in advanced steel products and reduce import reliance in critical sectors like defence, automotive, and space.

The scheme, which will begin offering incentives from FY 2026-27, focuses on products such as super alloys, stainless steel, CRGO, and coated steels. With a revised base year for pricing (FY 2024-25), the initiative is expected to foster domestic production and employment. So far, the PLI scheme has attracted Rs 43,874 crore in investment, generating employment of over 30,000.

The third round will cover 22 product sub-categories and offer incentives ranging from four percent to 15 percent based on incremental sales, benefiting companies in strategic and commercial steel grades.