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PLI disbursements set to surge in Q4, may fall short of Rs 11,000 cr target though
Industry News- Dec 08,23
Out of the total outlay of Rs 1.97 trillion for the PLI scheme initiated in 2020, Rs 2,900 crore was allocated to selected companies to meet production targets last year.
Disbursements under the Production Linked Incentive (PLI) are anticipated to gain momentum in the January-March period, following lackluster performance in the initial three quarters of the current fiscal year. However, a senior official disclosed on Monday that these disbursements are projected to fall short of the Rs 11,000 crore target for the year.
The official, opting for anonymity, stated, "Our target for this year remains at Rs 11,000 crore. Many disbursements will occur in the last quarter, but it appears we may not meet the target due to several projects in the gestation period."
Out of the total outlay of Rs 1.97 trillion for the PLI scheme initiated in 2020, Rs 2,900 crore was allocated to selected companies to meet production targets last year. This year, the Empowered Committee on PLI, led by the CEO of Niti Aayog, has approved incentives totalling Rs 1,000 crore for 'large scale electronics' manufacturing companies, but actual disbursement is pending. Once executed, this will bring the total disbursements under the scheme to Rs 3,900 crore.
For PLI in White Goods, encompassing parts of air conditioners and LEDs under the Ministry of Commerce and Industry, disbursement of approximately Rs 79 crore is anticipated in the final quarter of the financial year, as per the official.
The PLI scheme provides support for five years to newly selected units following a competitive bidding process. Across 14 sectors, 733 applications have been approved, resulting in investments of Rs 78,000 crore. PLI applicants have generated incremental sales of Rs 6 lakh crore and exports worth Rs 2.6 lakh crore.
The government is contemplating extending PLI to toys, parts of new-age bicycles, leather, and footwear. Discussions are also ongoing about introducing a new version of the PLI scheme for advanced steel manufacturing and chemicals and petrochemicals.
"The government is evaluating the progress of the PLI scheme. Some sectors are progressing well, while adjustments may be necessary in others. Inter-ministerial discussions are underway," noted the official. Two review meetings on the scheme have already taken place.
PLI schemes for telecom, electronics manufacturing, food processing, pharma, medical devices, and white goods are performing satisfactorily, whereas sectors like specialty steel require additional impetus.
Source: The Financial Express
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