Under PLI scheme at least six of eight sectors to switch to quarterly disbursals

  • Industry News
  • Jun 29,24
DPIIT is planning to hold the next stakeholder review after the budget announcement for 2024-25.
Under PLI scheme at least six of eight sectors to switch to quarterly disbursals

The Production Linked Incentive (PLI) scheme is set to transition to quarterly disbursement of incentives for at least six of the eight sectors that currently receive annual payments. These sectors include automobiles and parts, telecom and networking, electronics products, white goods, food products, textile products, and drones, aiming to expedite claim processing, sources said.

“The most successful PLI scheme so far, in terms of investments and production, is that of smartphones, which already has a provision for quarterly disbursement. The government concluded that this frequency is a strong incentive and should be extended to the remaining sectors,” an official tracking the matter told the source.

The Department for Promotion of Industry and Internal Trade (DPIIT), the nodal department for the PLI scheme, plans to hold the next stakeholder review of the scheme next month or just after the budget announcement for 2024-25, the official added.

Apart from increasing the frequency of incentive disbursements, the government is considering revamping the scheme in several sectors, such as textiles, white goods, electronics, and solar PVs, to make it more attractive to investors.

The quarterly disbursement of funds is likely to start in one or two months, as it will take some time for the line Ministries and Departments to complete the necessary processes. “Most of the eight sectors, except one or two such as speciality steel and solar PV modules, where proper disbursement of incentives is yet to begin, are expected to manage the switchover soon,” the official said.

In 2021-22, the government announced the PLI scheme with an outlay of Rs 1.97 trillion, initially covering 13 sectors and later extended to 14, to incentivise local production in strategic areas and encourage exports. These sectors include mobile manufacturing and specified electronic components; drug intermediaries & APIs; medical devices; automobiles and auto components; pharmaceuticals drugs; specialty steel; telecom & networking products; electronic/technology products; white goods (ACs and LEDs); food products; textiles (MMF segment and technical textiles); high-efficiency solar PV modules; ACC batteries; and drones & components.

While the scheme has shown excellent results for the mobile manufacturing sector, it has also started to gain traction in some sectors, such as the three pharmaceutical-related sectors and the IT hardware sector. However, other sectors still have a long way to go.

According to the latest estimates, the PLI scheme has attracted Rs 1.5 trillion in investments, led to production worth Rs 8-9 trillion, of which Rs 3-3.5 trillion were exported, the official said. The total disbursement of incentives reached ?100 billion, but this amount was primarily concentrated in just a handful of sectors.

In addition to increasing the frequency of incentive disbursements, the government is looking to revamp the scheme in several sectors, including textiles, white goods, electronics, and solar PVs, to make it more appealing to investors, the official added.

(Source: BusinessLine)

Related Stories

Plastic, Packaging & Printing
Avro India Launches Large-scale Flexible Plastic Recycling Facility in Ghaziabad

Avro India Launches Large-scale Flexible Plastic Recycling Facility in Ghaziabad

Avro India Limited has commissioned a greenfield recycling facility in Ghaziabad to process difficult-to-recycle flexible plastics, strengthening India’s circular economy and EPR compliance ecosys..

Read more
Aerospace Defence
Garuda Aerospace Inaugurates Drone Battery Facility with DGCA Chief

Garuda Aerospace Inaugurates Drone Battery Facility with DGCA Chief

Garuda Aerospace has inaugurated a drone battery manufacturing facility and a new academic block in Chennai, reinforcing its commitment to building a self-reliant and indigenous drone ecosystem in I..

Read more
Construction Equipment
The role of risk management in large projects

The role of risk management in large projects

Risk is inseparable from project management, particularly in large and long-duration projects, where inadequate risk identification, ownership and follow-up often lead to cost and time overruns. Pra..

Read more

Related Products

Hi There!

Now get regular updates from IPF Magazine on WhatsApp!

Click on link below, message us with a simple hi, and SAVE our number

You will have subscribed to our Industrial News on Whatsapp! Enjoy

+91 84228 74016