Seed Grant 2026
The PLI Scheme 1.2 for Specialty Steel aims to boost domestic manufacturing by incentivizing incremental production and Read More... investment in value-added steel products. Read less
Details
The Indian government, through the Ministry of Steel, has launched the Production Linked Incentive (PLI) Scheme 1.2 for Specialty Steel. This initiative is designed to give a significant push to domestic manufacturing, focusing on value-added steel products.
What Is This Scheme?
This scheme provides financial incentives to companies that increase their production of specific specialty steel grades. The goal is to encourage more investment in advanced manufacturing technologies, enhance local value addition, and reduce India's reliance on imported steel.
Who Can Benefit From This Scheme?
The scheme is specifically for companies registered in India that are involved in manufacturing identified specialty steel products. It targets those looking to expand their production capacity, improve their manufacturing processes, and contribute to the growth of the specialty steel sector in the country.
Why This Scheme Is Important
By offering incentives linked to production growth, the scheme encourages companies to invest in new machinery and technology. This not only helps in producing higher quality steel but also creates more job opportunities and strengthens India's position in the global specialty steel market. It's a key step towards achieving self-reliance in this critical sector.
Objective
Benefits
Farmers are provided seeds at a subsidy of up to 15% during Kisan Melas.
Sources and references
Eligibility Criteria
- You must be a company registered in India under the Companies Act, 2013.
- You should be manufacturing the specialty steel grades notified under the scheme, ensuring that the entire process, from melting to pouring, happens within India.
- While up to 20% of value addition can be done by third parties, only the company manufacturing the final eligible product can claim the incentive.
- Your company's net worth (including any group companies) must be at least 30% of your total committed investment, as per the latest audited financial statements.
- If you are a new company or a group company incorporated after March 31, 2025, your net worth should be at least 30% of the total committed investment before you apply.
- If you apply for multiple product types, your net worth will be assessed against the total committed investment for all those types.
- You need to meet the minimum requirements for incremental production, capacity, and investment as laid out in the scheme guidelines.
- Only investments that are eligible according to the scheme rules will be counted for calculating investment figures.
- Companies can use benefits from other government schemes, but the same investment and sales cannot be used for incentives under different PLI schemes.
- You are free to apply for PLI schemes from other ministries for products not covered here.
- Companies that have already received or are expected to receive benefits from earlier rounds of the Specialty Steel PLI Scheme cannot apply again in this round.
How To Apply
The application process involves a structured approach managed by a Project Management Agency (PMA). Key steps include:
- Ensure your company meets all eligibility criteria and has the necessary documentation.
- Submit your application within the stipulated timeframe.
- Your application will be evaluated by the Project Management Agency and the Empowered Committee.
- If approved, incentives will be calculated and disbursed through a defined mechanism.
For detailed instructions and to access the application portal, please refer to the official scheme guidelines and the website of the Ministry of Steel, Government of India.
Documents Required
- Certificate of Incorporation from the Registrar of Companies.
- Corporate Identity Number (CIN) of your company.
- Audited financial statements for the most recent financial year.
- A certificate confirming your company's net worth, including that of group companies.
- A Board Resolution or an Authorization Letter for the person signing the application.
- A Detailed Project Report (DPR) outlining your manufacturing plans.
- An End-User certificate if applicable.
- Details of the product sub-category you are applying for (as per Annexure-I).
- Declarations confirming your company is not a Non-Performing Asset (NPA), involved in fraud, or a wilful defaulter, and is not undergoing insolvency proceedings.
- Any other documents specifically required by the scheme guidelines.
FAQ’s
What is the primary goal of the Production Linked Incentive (PLI) Scheme 1.2 for Specialty Steel?
The main aim of this scheme is to boost domestic manufacturing of specialty steel by offering incentives on the additional steel produced and encouraging investment in the sector.
Can companies that are already in financial trouble apply for this scheme?
No, companies that have been declared as Non-Performing Assets (NPA), are known wilful defaulters, or have had fraud reported against them by financial institutions are not eligible to participate.
How is the 'incremental production' calculated for the incentive?
Incremental production is calculated by comparing the production volume in the current period against the production volume from sales in the corresponding previous period.
What are the specific product categories covered under this PLI scheme?
Only specialty steel products that are explicitly listed in Annexure-I of the official scheme guidelines are eligible for incentives and consideration under this scheme.
What is the financial year considered as the base for calculating performance in this scheme?
The Financial Year 2024–25 is set as the base year. This year is used as a reference point to measure and calculate any increases in production and performance under the scheme.
If a company is part of a larger group, how is its eligibility assessed?
If you are part of a group, the combined net worth of your company and its group companies must be at least 30% of the total committed investment. This is based on the latest audited financial statements.
Who is eligible to apply for the Specialty Steel PLI Scheme 1.2?
Any company legally registered in India under the Companies Act, 2013, that manufactures the eligible specialty steel products defined by the scheme, can apply.
What is the deadline to submit applications for the scheme?
Eligible companies have a period of 30 days starting from the official launch date of the PLI Scheme 1.2 to submit their applications.
Can a company use the same investment for incentives under multiple government schemes?
No, the scheme states that the same investment and sales figures cannot be used to claim incentives under other PLI schemes. However, companies can utilize benefits from other schemes if applicable and permitted.
Does the scheme allow for any part of the manufacturing process to be outsourced?
Yes, the scheme allows up to 20% of the total value addition to be carried out by third parties. However, the incentive itself can only be claimed by the primary company that manufactures the final eligible product sub-category.
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