The Centre's Production Linked Incentive (PLI) scheme has received over Rs 1.03 lakh crore in investments and disbursed incentives of Rs 4,415 crore as of November 2023. Officials aim to make more payouts this fiscal year, although it is unclear whether the target of Rs 11,000 crore would be attained.
"Three to four PLI schemes have received a positive response, giving us hope that other schemes will follow suit and perform well," said Rajiv Singh Thakur, Additional Secretary, Department for Promotion of Industry and Internal Trade.
Out of the 14 schemes, those for large-scale electronics manufacturing, food processing, and telecom and networking products have received a positive response and are close to meeting their aims. However, three to four schemes are yet to begin disbursement and are in the gestation period, with disbursements likely to begin in the next fiscal year, 2024-25, Thakur told reporters Wednesday.
Incentives have been distributed to eight sectors: large-scale electronics manufacturing (LSEM), IT hardware, bulk medications, medical devices, pharmaceuticals, telecom and networking equipment, food processing, and drones and drone components. This fiscal year, no disbursements were granted under PLI schemes for the Ministry of New and Renewable Energy connected to high efficiency solar PV modules or the Ministry of Heavy Industries.
"Disbursements will occur. Investment and production are on schedule. "We are confident that these will work out and that the Rs 1.97 lakh crore outlay for the PLI scheme will be used up," Thakur stated.
The PLI scheme's investments resulted in Rs 8.61 lakh crore in production and sales, as well as more than 6.78 lakh direct and indirect jobs. "PLI Schemes have witnessed exports surpassing Rs 3.20 lakh crore, with significant contributions from sectors such as large-scale electronics manufacturing, pharmaceuticals, food processing, and telecom and networking products," stated a statement from the Ministry of Commerce and Industry.
As of now, 746 applications have been approved in 14 sectors, with an estimated investment of more over Rs 3 lakh crore. PLI recipients include 176 MSMEs in industries such as bulk medications, medical devices, pharmaceuticals, telecommunications, white goods, food processing, textiles, and drones. Several MSMEs work as investment partners and contract manufacturers for larger corporations.
The PLI project was launched in 2020 and expanded to 14 initiatives with a total investment of Rs 1.97 lakh crore to develop national manufacturing champions and create job opportunities for the country's youth.
