Abstract: The present disclosure relates to designing of steel composition for line pipe steel to be used for sour environment. The developed steel of the present disclosure exhibits enhanced tensile properties in accordance with API 5L PSL-2 specification for X-65 grade steel, along with superior hydrogen induced cracking resistance with crack length ratio (CLR) of less than 10%, crack thickness ratio (CTR) of less than 5%, crack sensitivity ratio (CSR) of less than 2%. The developed steel is designed such that it is readily hot/cold formed and welded to form linepipe tubes to be used for the transportation of natural gas or crude oil, especially of sour grade. The present disclosure also provide a method of manufacturing the said steel having the composition of the present disclosure.