Govt seeks industry feedback on PLI scheme to enhance effectiveness

The govt announced the PLI scheme in 2021 for as many as 14 sectors, such as telecommunication, white goods, textiles and pharma with an outlay of Rs 1.97 lakh crore

The government has sought feedback from the industry on the production linked incentive (PLI) scheme with a view to enhancing its effectiveness, according to an official statement issued on Wednesday.

The commerce and industry ministry, which coordinates the scheme, also urged PLI beneficiaries to take up any procedural challenges/ issues with the respective implementing ministry or department so that positive reforms can be brought about and the scheme can be made more efficient and effective.

Issues pertaining to the scheme were discussed in a workshop called by the Commerce and Industry Ministry on June 27 here.

Commerce and Industry Minister Piyush Goyal stated that the government is committed to fostering a conducive business environment and accelerating growth in PLI sectors.

"The minister encouraged industry's feedback and collaborative engagement to shape the policies, procedures and effectiveness of the PLI scheme," the ministry said in a statement.

The government announced the PLI (production-linked incentive) scheme in 2021 for as many as 14 sectors, such as telecommunication, white goods, textiles and pharma with an outlay of Rs 1.97 lakh crore.

The meeting assumed significance as the government has disbursed only Rs 2,900 crore till March 2023, out of Rs 3,400 crore claims received under the scheme. The minister asked the implementing departments to hold regular consultations and roundtables with their respective PLI beneficiary to resolve their issues.

The objective of the workshop was aimed to bring all the key stakeholders on a single platform so that they can exchange their knowledge and experiences to ensure effective implementation of the schemes under 14 key sectors.

The Workshop witnessed participation from 10 implementing central departments, companies/ PLI beneficiaries under 14 key sectors, various Project Management Agencies (PMAs) like IFCI (Industrial Finance Corporation of India), Small Industries Development Bank of India (Sidbi), Metallurgical and Engineering Consultants (MECON), Indian Renewable Energy Development Agency (IREDA), and Solar Energy Corporation of India (SECI), select industry associations and relevant export promotion councils.

Representatives were also there from Wistron, Foxconn, Samsung, Dell, Wipro GE, Dr. Reddy's, Tata Motors, Mahindra & Mahindra, Nokia Solutions, ITC, Dabur, JSW, and Reliance among others.

"Key executives from these companies, along with Government officials, were actively involved in a collaborative open discussion, interactive session, and presentations throughout the workshop," the ministry said adding the workshop provided a unique forum to exchange insights on the impact of the schemes.

The workshop agenda covered various aspects related to PLI schemes, including their scope, eligibility criteria, incentives, and the roadmap for successful implementation including grievance redressal mechanism provided by concerned central departments and PMAs.

"Key topics included factors/ policy nuances contributing to Schemes' success, enhancing domestic value addition, and capitalizing on emerging technologies," it said.

Actual investment of Rs 62,500 crore has been realized (till March) which has resulted in incremental production/ sales of over Rs 6.75 lakh crore and employment generation of around 3,25,000.

PLI schemes have played a significant role in promoting domestic value addition (DVA) in various sectors.

It has led to increased value addition in the electronics sector and in smartphone manufacturing, 23 per cent and 20 per cent respectively, from negligible in 2014-15.

"Up to 80 per cent, DVA has been reported in various products under pharmaceuticals. Import substitution of 60 per cent has been achieved in the telecom sector. DVA up to 50 per cent is envisaged under automobiles and auto component sectors," it added.