Synergy Advanced Metals Limited has signed a memorandum of understanding with the Ministry of Steel, Government of India, to participate in the Production-Linked Incentive (PLI) scheme for speciality steel. The company executed four MoUs after clearing MECON’s review process.

As India sharpens its focus on high-value steel, one question stands out: can domestic stainless steel capacity keep pace with rising demand?

Strengthening India’s stainless steel ambitions

The newly signed agreements place Synergy Advanced Metals among the growing list of companies supporting India’s drive to expand speciality steel production. The MoUs were approved following a review conducted by MECON, the programme management agency appointed by the Ministry of Steel to evaluate eligibility and oversee implementation of the scheme.

The development reflects the government’s broader strategy to boost investment in high-value steel categories, including stainless steel. Industry watchers often point out that stainless steel demand continues to rise steadily, driven by infrastructure growth, engineering applications, mobility, consumer goods, and strategic industries.

As per the company, the agreement is an important step, noting that participation in the PLI scheme aligns with national manufacturing priorities. They indicated that the move would help the company contribute more strongly to domestic stainless steel production while supporting India’s long-term industrial goals.

Focus on capacity and technology

According to company officials, the MoUs are expected to support capacity expansion and technological improvements. They highlighted that strengthening stainless steel manufacturing capabilities remains a key priority, particularly as industries increasingly seek durable and corrosion-resistant materials.

The company shared that closer alignment with initiatives such as Make in India and Aatmanirbhar Bharat could help accelerate local production and reduce reliance on imports. Representatives also suggested that investments linked to the scheme may encourage technology upgrades, improve operational efficiency, and enhance product quality.

Industry experts frequently stress that modernisation and scale are critical for stainless steel producers aiming to remain competitive. Expanding capacity alone is not sufficient; adopting advanced technologies and improving processes are equally vital to meeting evolving market requirements.

PLI scheme gains momentum

Government figures show the growing traction of the PLI Scheme 1.2. Data released by the Press Information Bureau shows that 85 MoUs have been signed with 55 companies, representing committed investments of 118,870 million. These projects are projected to add 8.7 million tonnes of speciality steel capacity by FY 2031.

The planned additions span several segments, including electrical steel, alloy steel, stainless steel grades, coated products, and materials for strategic sectors. Stainless steel remains a central focus due to its expanding role across multiple industries and its importance in value-added manufacturing.

Synergy Advanced Metals’ manufacturing base

Synergy Advanced Metals Ltd, formerly Synergy Steels Ltd, manufactures stainless steel long products. Headquartered in New Delhi, the company operates its primary manufacturing facility in Alwar, Rajasthan. Its product range includes stainless steel billets, wire rods, bright bars, flats, and fasteners.

As of 30 September 2025, the company reported a production capacity of 190,000 tonnes per annum. Company representatives stated that the MoUs would be implemented in phases, subject to policy timelines and regulatory approvals, with the aim of meeting rising demand in domestic and strategic markets.