Centre to renew consultation with firms shortlisted under PLI scheme

DPIIT asked to nudge ministries to hold talks with beneficiaries

The Centre will re-initiate talks with companies that have been shortlisted under the production-linked incentive (PLI) scheme, to iron out the challenges being faced by them and come up with a prompt resolution, people aware of the matter said.

The Department for Promotion of Industry and Internal Trade (DPIIT) has been asked to nudge ministries to hold consultations with the PLI beneficiaries.

The development comes in the backdrop of the first-of-its-kind review meeting of the scheme that aims to boost local manufacturing.

“Just like the first round of consultation was held with stakeholders to prepare the policy, a similar consultation will now be done with companies that have been shortlisted under various PLI schemes,” the person cited above told Business Standard.

The Centre has allocated Rs 1.97 trillion towards PLI schemes for 14 key sectors, including telecom, textile, automobile, white goods pharmaceutical drugs, among others, that not only aim to boost domestic manufacturing, but also create jobs, curb cheap imports and boost exports.

To sort out the teething issues the beneficiaries face, along with focus on the sectors where the progress has been slower-than-expected, Union Commerce and Industry Minister Piyush Goyal on Tuesday met key stakeholders, including officials from ministries and government departments responsible for rolling out the scheme. 

The meeting saw participation from 70 companies, including Tata Steel, Tata Motors, JSW Steel, Mahindra and Mahindra, Dr Reddy’s Laboratories, Nokia, among others.

Export promotion councils and the five project monitoring agencies (PMAs) — Industrial Finance Corporation of India, Small Industries Development Bank of India, Metallurgical and Engineering Consultants, Indian Renewable Energy Development Agency, and Solar Energy Corporation of India were also present at the meeting. “The DPIIT will have to compile the recommendations of the companies and raise it at an appropriate level to enable changes,” the person cited above said.

According to the DPIIT, as on date, the government has paid only Rs 2,874 crore to beneficiaries in the eight sectors — mobile manufacturing, IT hardware, pharmaceutical drugs, bulk drugs, medical devices telecom, food products, and drones. The progress has been slow in the case of the remaining six sectors — steel, textile, battery, white goods, solar PV and automobile — where incentive disbursements are yet to begin, government officials had said earlier this month. A detailed analysis regarding the same is being done by individual ministries.