Anticipating Rs 13,000 Cr Disbursement: Revamping PLI Scheme for Lagging Sectors – DPIIT Insider
- ByStartupStory | August 13, 2023
The government is set to disburse approximately Rs 13,000 crore to eligible companies seeking benefits from the production linked incentive (PLI) schemes. Despite ongoing efforts to refine the scheme for sectors experiencing slower uptake, Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT), Rajesh Kumar Singh, revealed the anticipated disbursement. Singh noted that disbursal amounts would significantly increase from this year onwards. However, predicting the complete fund disbursement is complex due to various factors. Singh mentioned that savings from the scheme are being considered for other PLI programs or restructured PLI initiatives. The restructured PLI schemes are currently in different stages of inter-ministerial consultation, with adjustments and approvals required for both minor and major changes.
Sectors such as high-efficiency solar PV modules, advanced chemistry cell (ACC) batteries, textile products, and specialty steel face challenges in the PLI uptake, while electronics, pharma, medical devices, telecom, food processing, and white goods sectors perform well under the scheme. The government is addressing issues like timely claims processing, visa-related challenges involving Chinese professionals, and delays in obtaining environmental clearances, as raised by stakeholders.
The primary goals of the PLI schemes are to attract investments in key sectors, enhance manufacturing sector efficiency, bring economies of scale, and improve the global competitiveness of Indian companies. The approved schemes cover 14 sectors and are in various stages of implementation. Among the beneficiaries, 176 MSMEs have been selected out of the 733 applications from different sectors. Notably, actual investments of Rs 78,000 crore have been made, resulting in sales over Rs 6 lakh crore and an overall export boost of Rs 2.6 lakh crore, generating around 4 lakh employment opportunities until 2022-23.
Regarding the extension of the PLI scheme to additional sectors like toys, an inter-ministerial process is currently underway. In response to import curbs imposed on laptops and computers, Singh clarified that the government intends to adopt a liberalized licensing regime, alleviating concerns.
Regarding the draft e-commerce rules released on June 21, 2021, Singh mentioned that the public consultation phase has concluded, and the finalization process is ongoing. The e-commerce entity will align with international best practices, and while details remain undisclosed, Singh assured that progress is being made.
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