- Why in news
- On 9 February 2026, Steel Minister H.D. Kumaraswamy launched PLI Scheme 1.2 for Specialty Steel at Vigyan Bhawan, New Delhi, and 85 MoUs were signed with 55 companies.
- What it is
- The PLI Scheme for Specialty Steel gives output-linked incentives to firms that make high-value steel grades in India. It aims to cut import dependence in grades used by automobiles, railways, defence, electrical equipment and aerospace. Rounds 1.0 and 1.1 came earlier; 1.2 is the third round.
- Scale of MoUs
- 85 MoUs signed with 55 companies under PLI 1.2, committing ₹11,887 crore.
- Capacity addition
- The projects are expected to add 8.7 million tonnes of specialty steel capacity by FY 2031.
- Incentive rates
- Incentive rates run from 4% to 15% over five years.
- Earlier rounds
- PLI 1.0 and 1.1 together have committed investments of ₹43,874 crore.
- Ministry
- The scheme is run by the Ministry of Steel.
Don’t confuse with PLI 1.0/1.1 vs 1.2: ₹43,874 crore is the combined commitment under rounds 1.0 and 1.1, while ₹11,887 crore is for 1.2.
Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.
Why it matters
- Cuts import dependence in high-grade steel and saves foreign exchange.
- Supports Make in India and links Indian firms to global value chains.
Problems
- Timely implementation of projects and meeting incentive thresholds.
- Dependence on imported technology and inputs for advanced grades.
Way forward
- Time-bound project execution with quick resolution of operational issues.
- Greater use of indigenous technology and inputs.
Put in your answer
PLI 1.0 and 1.1 outcome: Committed investments of ₹43,874 crore across the first two rounds.
PLI 1.2 capacity: 8.7 million tonnes of new specialty steel capacity by FY 2031.
- 2025Mains GS3 · Q12Rationale, achievements, and improvements of the PLI scheme
- 2023Prelims Q88Statements on India's PLI scheme and its beneficiaries' participation
- 2015Prelims Q58Which input steel production in India must be imported: coking coal
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
Prelims practice · Statements
Ours, not from a UPSC paper
Consider the following statements:
- 1.PLI Scheme 1.2 for Specialty Steel is the third round of the specialty steel PLI scheme.
- 2.The committed investment under PLI Scheme 1.2 is ₹43,874 crore.
- 3.The incentive rates under PLI Scheme 1.2 range from 4% to 15% over a five-year period.
Which of the statements given above is/are correct?
True or false?
1 of 3
Statements the way Prelims prints them. Say first, then see the fact.
1.Under PLI 1.2, 85 MoUs have been signed with 55 companies.
True. 85 MoUs with 55 companies.
2.The PLI scheme for specialty steel is administered by the Ministry of Commerce and Industry.
False. It is administered by the Ministry of Steel.
3.The scheme covers only electrical steel and excludes alloy and stainless steels.
False. It covers electrical steel, alloy and stainless steels, coated products and other strategic grades.
Written by us from the release, not by UPSC; checked by a second model.
Worth revising until Prelims 2027: most news questions come within two years of the event.