Parliament Question: Review of PLI Scheme for Specialty Steel

GOVERNMENT OF INDIA MINISTRY OF STEEL LOK SABHA UNSTARRED QUESTION NO. 1496 FOR ANSWER ON 28.07.2026 REVIEW OF PLI SCHEME FOR SPECIALTY STEEL

1496. SHRI K E PRAKASH:

Will the Minister of STEEL be pleased to state:

(a) whether the Union Government has reviewed the participation of different States under the Production Linked Incentive (PLI) Scheme for Specialty Steel with reference to the geographical distribution of approved projects, investments and beneficiaries;

(b) whether the Government has received any representations from industry bodies, steel manufacturers and MSMEs regarding greater location of beneficiary manufacturing facilities including Tamil Nadu, in the PLI Scheme for Specialty Steel and allied manufacturing sectors;

(c) whether the Union Government proposes any measures to enhance participation of MSME-based steel and engineering units in industrial clusters of Tamil Nadu including Erode District where engineering and fabrication MSMEs operate under existing and future phases of the PLI Scheme; and

(d) whether any policy initiatives are under consideration to promote wider regional dispersal of investments, value-added steel manufacturing and downstream industrial development through the PLI framework? ANSWER THE MINISTER OF STATE IN THE (SHRI BHUPATHIRAJU SRINIVASA VARMA) MINISTRY OF STEEL

(a)to(d): To participate in the Production Linked Incentive (PLI) Scheme for Specialty Steel a company must be registered in India, commit to produce the specialty steel products by adhering to the investment and capacity thresholds, and have a net worth of at least 30 per cent of the committed investment. To facilitate wider participation from companies including MSMEs, eligibility criteria were relaxed in the third round of the scheme.

The Scheme is applicable for all states in India. 167 projects of 100 companies from 15 States have been approved, which includes six projects in Tamil Nadu. *****