Centre unlikely to launch PLI schemes for new sectors this year: Report

The proposed changes to the PLI schemes will allow new players to benefit from the incentives, sources said

The Centre has decided not to introduce new production-linked incentives (PLI) for sectors other than the existing 14, as well as another three — new-age bicycles, leather & footwear, and toys — for which Cabinet notes have already been circulated, The Financial Express (FE) reported.

According to official sources, the likely addition of the three sectors will not result in additional budget spending, and the PLI outlay of Rs 1.97 trillion will not be increased further.

The new schemes are being developed with the labor-intensive nature and import substitution potential in mind.

The report further said that the proposed changes to the PLI schemes will allow new players to benefit from the incentives while also addressing various investor concerns about procedural ambiguities.

Following the workshop with stakeholders on Tuesday, the Department for Promotion of Industry and Internal Trade (DPIIT) has asked the ministries in charge of implementing the PLI schemes for various industry sectors to hold a new round of consultations with the beneficiary companies to understand their problems.

Also Read: Govt seeks industry feedback on PLI scheme to enhance effectiveness

The inputs from the firms would be considered at the appropriate level for resolution of the issues, they added.

Because the scheme was implemented after Cabinet approval, any changes that may become necessary would have to be brought before the Cabinet for resolution. However, no major restructuring of the PLIs is being considered.

“All ministries have been told at the workshop on PLI that was held on Tuesday that, while till now they had conducted wider stakeholder consultations, now they should hold a consultation with the PLI companies. If problems come up, they should tell the DPIIT so that it can take them to the appropriate level for redressal,” an official said. DPIIT is the coordinating ministry for the scheme.

While sectoral interactions with ministries would continue, the next larger stakeholder consultation is set for the first week of October.

At the last meeting with the government, some companies raised the issue of clearance delays, which are impeding project implementation. The disagreement with the officials over the interpretation of some of the scheme's clauses, such as what can be included when they claim incremental investment and production, was also mentioned.

The official acknowledged that as the scheme is implemented on the ground, some issues have come up.