Seed Grant 2026

This scheme aims to boost India's specialty steel manufacturing by offering incentives on increased production and investment, Read More... fostering technological advancement, and reducing reliance on imports. Read less

Details

The Indian government is keen on strengthening its domestic manufacturing sector, and the Production Linked Incentive (PLI) Scheme 1.2 for Specialty Steel is a key initiative in this direction. Launched by the Ministry of Steel, this scheme is designed to give a significant push to the production of value-added specialty steel within the country.

What Is This Scheme About?

The core idea behind the PLI Scheme 1.2 is to encourage companies to produce more specialty steel and invest in upgrading their facilities. It works by providing financial incentives linked to the increase in production and sales of specified specialty steel grades. This means that the more you produce and sell beyond a certain baseline, the more support you can get.

Who Can Benefit From This Scheme?

This scheme is specifically for companies that are already engaged in the manufacturing of specialty steel in India. To be eligible, your company must be registered under the Companies Act, 2013, and ensure that the entire process of melting and pouring the steel happens within India. It’s all about building a robust, end-to-end domestic manufacturing ecosystem.

Why This Scheme Is Important

In today's global market, having strong domestic manufacturing capabilities is crucial. The PLI Scheme 1.2 for Specialty Steel aims to achieve several key objectives: it encourages companies to invest in new machinery and advanced technologies, promotes the creation of value-added products right here in India, and helps reduce our dependence on imported specialty steel. Furthermore, it's expected to create more jobs and enhance India's overall capacity in advanced steel manufacturing.

Objective

This scheme aims to boost India's specialty steel manufacturing by offering incentives on increased production and investment, fostering technological advancement, and reducing reliance on imports.

Benefits

Farmers are provided seeds at a subsidy of up to 15% during Kisan Melas.

Sources and references

Guidelines (Page No. 187)

Eligibility Criteria

You must be an Indian company registered under the Companies Act, 2013.
Your company should be manufacturing identified specialty steel grades. The entire process, from melting to pouring, must be done within India.
A maximum of 20% of the total value addition can be outsourced to third parties. However, the incentive can only be claimed by the company that makes the final eligible product.
Your company's net worth (including group companies) should be at least 30% of the total committed investment, proven by audited financial statements from the previous financial year.
For new companies or group companies formed after March 31, 2025, the net worth must be at least 30% of the total committed investment before you apply. If you apply for multiple product categories, your net worth will be checked against the total investment planned across all categories.
You must meet the minimum required levels for incremental production, capacity, and investment as set out in the scheme guidelines.
Only investments defined as eligible under the scheme rules will be counted for calculating investment figures.
Companies can take advantage of other government schemes, but the same investments and sales cannot be used to claim incentives under different PLI schemes.
Companies receiving or expecting benefits from earlier rounds of the PLI Scheme for Specialty Steel cannot apply for this current round.

How To Apply

The application process is structured to ensure transparency and efficient management:

Eligible companies need to submit their applications within the designated application window.
Applications will be managed by a Project Management Agency (PMA).
The Empowered Committee will oversee the approval process.
Incentive calculations and disbursement will follow a defined mechanism.

For detailed application submission, please refer to the official scheme guidelines and the portal provided by the Ministry of Steel.

Documents Required

Certificate of Incorporation from the Registrar of Companies.
Company Identification Number (CIN) details.
Audited financial statements for the preceding financial year.
A certificate confirming your company's net worth, including that of its group companies.
Board Resolution or an Authorization letter for the person signing the application.
A Detailed Project Report (DPR).
End-user certificate, if applicable.
Details of the specific product sub-categories you are applying for (as per Annexure-I).
A declaration stating that the company is not a Non-Performing Asset (NPA), has not engaged in fraud, is not a wilful defaulter, and is not undergoing insolvency proceedings.
Any other documents as specified in the official scheme guidelines.

FAQ’s

What is the main goal of the PLI Scheme 1.2 for Specialty Steel?

The main goal is to boost the domestic manufacturing of specialty steel by providing incentives to companies based on their increased production and investment in this sector.

Can companies that are in NPA or have been flagged as wilful defaulters apply for this scheme?

No, companies that are classified as Non-Performing Assets (NPA), have a history of wilful default, or have been involved in fraud reported by financial institutions are not eligible to apply.

How is 'incremental production' calculated under this scheme?

Incremental production is figured out by comparing the production from sales during the current period against the production from sales in the corresponding period of the previous year.

What does the scheme mean by 'capacity addition'?

Capacity addition refers to the installation of new production facilities or units by the applicant during the scheme's duration, aimed at increasing the overall manufacturing capacity.

What is the financial year considered as the base for calculations?

Financial Year 2024–25 is set as the base year. This year serves as a reference point for calculating any increase in production and assessing performance under the scheme.

Which specific steel products are covered by this scheme?

Only those specialty steel products that are explicitly listed in Annexure-I of the official scheme guidelines are eligible for consideration and incentives.

What are the requirements for a company's net worth?

The applicant company's net worth, including its group companies, must be at least 30% of the total committed investment. This should be supported by audited financial statements from the year preceding the application.

Is it permissible to use third-party manufacturing services under the scheme?

Yes, up to 20% of the total value addition can be carried out by third parties. However, it's important to note that only the company manufacturing the final eligible specialty steel product can claim the incentive.

Who is eligible to apply for this PLI scheme?

Companies registered in India under the Companies Act, 2013, that are involved in manufacturing eligible specialty steel products can apply for this scheme.

How long does a company have to apply?

Companies have a window of 30 days from the launch date of PLI Scheme 1.2 to submit their applications. It's important to apply within this period.