PLI 1.2 for Specialty Steel — Incentives From the Ministry of Steel — Frequently Asked Questions

It is a Production Linked Incentive scheme run by the Ministry of Steel, Government of India, for the specialty steel sector. Instead of handing out a fixed grant, it rewards manufacturers with a financial incentive linked to the extra specialty steel they produce and sell. The aim is to draw investment into modern plant, machinery and technology, keep value addition inside India, and build domestic capability in advanced steelmaking.

There is no single fixed amount — the payout varies from project to project. The incentive is calculated on incremental sales of eligible specialty steel products, can be claimed for a maximum of five years from FY 2025-26, and is worked out through a defined mechanism involving the Project Management Agency and the Empowered Committee, based on the targets approved for your project.

It is a subsidy-style incentive, so it is non-dilutive — the government does not take any equity stake in your company in exchange for the money. You receive the incentive against verified incremental sales over the approved period.

Applicants must be companies registered in India under the Companies Act, 2013, engaged in end-to-end domestic manufacturing of the identified specialty steel grades, with the input material melted and poured within the country. They also need to satisfy the net worth requirement relative to committed investment and meet the prescribed minimum thresholds for incremental production, capacity and investment.

The net worth of the applicant, including its group companies, must be at least 30% of the total committed investment, based on audited financial statements of the immediately preceding financial year. For a new company, or a group company incorporated after 31/03/2025, that 30% cushion must be in place before the application is submitted.

No. Projects that have received, or are expected to receive, incentives under previous rounds of the PLI Scheme for Specialty Steel are not eligible for this round (PLI 1.2). Companies may, however, take benefits under other schemes, as long as the same investment and sales are not counted twice for incentives under different PLI schemes.

It covers the specialty steel grades identified under the scheme guidelines, and the incentive attaches to the eligible end-product sub-category. Up to 20% of total value addition may be done through third parties, but only the company that manufactures that eligible end-product sub-category can claim the incentive.

FY 2024-25 is the base year for the scheme's calculations. Incremental production and sales are measured against that base year, and incentives can be claimed for a maximum period of five years beginning from FY 2025-26.

Applications are made entirely online through the official PLI portal at https://plimos.mecon.co.in/ords/plimos/r/138/pli-1-21?session=6255414470941. You register with your company name, Corporate Identification Number (CIN) and incorporation date, add the authorised contact person's details, set a password, enter the captcha and submit. A unique registration is created against your CIN, and only one registration per CIN is allowed — that CIN and password are then used for all future logins. The application must be submitted within 30 days from the launch of PLI Scheme 1.2, and it has to be filed by an authorised signatory duly empowered by the Board of Directors or the Managing Director.

You will need your company name, CIN and incorporation date, along with the name, designation, mobile number and email ID of the authorised contact person, plus a password created to the prescribed requirements and a captcha entry. The registered mobile number and email ID are used for all future communication and login, so keep them accurate.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for PLI 1.2 for Specialty Steel — Incentives From the Ministry of Steel, though having it can strengthen your application and unlock other benefits.

PLI 1.2 for Specialty Steel — Incentives From the Ministry of Steel is offered by Ministry of Steel, a government body. It is provided as non-dilutive funding.