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The government was set to launch the third round of the production-linked incentive (PLI) scheme for Specialty Steel on Tuesday, which is one of the key initiatives under the Atmanirbhar Bharat vision. 

The PLI 1.2 launch will be presided over by Union Minister H.D. Kumaraswamy, in the presence of senior officials, and other stakeholders from the sector, according to Ministry of Steel.

The ministry said that the PLI Scheme for Specialty Steel, approved by the Union Cabinet in July 2021 with an overall outlay of Rs 6,322 crore, aims to transform India into a global hub for production of high-value and advanced steel grades.

The PLI scheme has attracted a committed investment of Rs 43,874 crore so far, with Rs 22,973 crore already invested and over 13,000 jobs created under the first two rounds.

The scheme covers 22 product sub-categories including super alloys, CRGO, alloy forgings, stainless steel (long and flat), titanium alloys, and coated steels.

Incentive rates range from 4 per cent to 15 per cent, applicable for five years starting FY 2025–26, with disbursal beginning in FY 2026–27.

The base year for pricing has also been updated to FY 2024–25 to better reflect current trends.

The PLI scheme incentivises incremental production and investment in identified product categories, thereby enhancing value addition within the country and reducing import dependence in critical sectors such as defence, power, aerospace and infrastructure.

Meanwhile, the country aims to achieve 300 million tonnes of crude steel production capacity by 2030. Notably, India's domestic steel demand is growing at an impressive 11-13 per cent, fuelled by large-scale infrastructure projects, while global demand faces a slowdown, according to Steel Ministry.

Steel production surged by a robust 14.1 per cent in September compared to the same month of the previous year on the back of increased demand from big-ticket infrastructure projects being carried out by the government.