New Delhi (Agency): The Indian government is poised to distribute approximately Rs 13,000 crore to qualifying companies under the Production Linked Incentive (PLI) program. This decision follows observations that certain sectors haven’t taken full advantage of the scheme, and adjustments are being made accordingly.
Rajesh Kumar Singh, the Secretary for the Department for Promotion of Industry and Internal Trade (DPIIT), revealed that from this year, the disbursement amount would be substantially increased. “The disbursals… will go to about Rs 13,000 crore this year,” Singh informed the media.
Contrasting this with the past, the government had only allocated Rs 2,900 crore up until March 2023 from the Rs 3,400 crore claims obtained under this initiative.
Introduced in 2021, the PLI scheme targeted 14 sectors, such as telecommunications, medical device manufacturing, automobiles, food products, and more, with a total budget of Rs 1.97 lakh crore. Singh, when questioned about the total fund allocation timeline, commented, “It is difficult to say… But we expect that during the tenure of the scheme, a good part will get exhausted.”
Savings emerging from this scheme might be redirected towards other or restructured PLI plans. Singh mentioned that these revamped schemes are “under various stages of inter-ministerial consultation.” He elaborated, “There are some course-corrections or tweaking that are required… some are minor, some are major and that will require higher level approvals.”
Certain sectors, like solar PV modules and textile products, have been slower in adapting to the PLI. Meanwhile, sectors like electronics, pharma, and white goods have embraced it effectively.
The government aims to resolve challenges in the PLI’s implementation, such as claim processing delays and issues needing specific expertise. The scheme’s goal? To pull in investments in vital sectors, enhance manufacturing efficiency, and elevate Indian firms to global competitiveness.
Of the 733 applications from 14 sectors, 176 Medium, Small and Micro Enterprises (MSMEs) will benefit. Singh also highlighted that “Rs 78,000 crore actual investments have already happened,” leading to sales over Rs 6 lakh crore, elevating exports by Rs 2.6 lakh crore until 2022-23, and creating roughly 4 lakh jobs.
On the topic of extending the PLI to other sectors, Singh mentioned ongoing inter-ministerial discussions. Discussing recent import restrictions on laptops and computers, he assured that the government would adopt a more “liberalised licensing regime.”
Regarding the e-commerce policy, Singh stated, “We are in the process of finalizing it…” without revealing further details. However, he confirmed that any actions taken would align with “international best practices.”
This move by the Indian government reflects its proactive approach towards boosting domestic production, elevating economic growth, and fortifying Indian industries in the global market.
