Govt may soon tweak PLI schemes for pharma, textiles to boost investment

These sectors have been identified after inter-ministerial consultations on the performance of the scheme for various products

rupee, loan, indian rupee

Photo: Pexels

Press Trust of India New Delhi

Listen to This Article

The government may soon tweak the production-linked incentive scheme for pharmaceuticals, drones and textiles sectors to encourage investment and boost manufacturing, an official said.
These sectors have been identified after inter-ministerial consultations on the performance of the scheme for various products.
The official also said that disbursement of production-linked incentives (PLI) for white goods (AC and LED lights) would start this month and that would push the amount of disbursement, which was only Rs 2,900 crore till March 2023.
The scheme was announced in 2021 for 14 sectors such as telecommunications, white goods, textiles, manufacturing of medical devices, automobiles, speciality steel, food products, high-efficiency solar PV modules, advanced chemistry cell battery, drones and pharma with an outlay of Rs 1.97 lakh crore.
"We have identified the sectors. We are going to send the combined note to seek approval of the Union Cabinet. The changes include extending some time (for pharma sector) and adding some additional products in some sectors.
"In textiles, we are expanding the definition of certain other products in the technical textiles segment; in drones, we are increasing the amount," the government official, who did not wish to be named said.

Also Read

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

Samsung to get Rs 600 crore under PLI scheme for smartphones: Report

Sun Pharma Q1 net profit drops 2% YoY, Revenue up 11%; US sales at $471 mn

Domestic demand to drive textile sector growth in FY24: CRISIL SME Tracker

Apple unlikely to apply for subsidies under PLI 2.0 scheme: Report

Trade talks between India, Canada have taken hit amid rise in tensions

NHAI arm to develop logistics park in Bengaluru at Rs 1,770 crore

Difference between AIR of DBK & actual duty incidence can be rebated

Subsidy of Rs 150 cr distributed under PM's Employment Generation Programme

Russia and Switzerland outliers amid contracting imports, shows data

The total amount allocated for the PLI scheme for drones and drone components is Rs 120 crore spread over three financial years.
A senior official of the commerce and industry ministry had earlier stated that some course corrections or tweaking were needed in PLI schemes that were not doing well.
PLI schemes for sectors which are not picking up well include high-efficiency solar PV modules, advanced chemistry cell (ACC) batteries, textile products and speciality steel.
On the other hand, the scheme is doing well in sectors such as electronics, pharma, medical devices, telecom, food processing, and white goods.
The government is trying to sort out issues such as timely processing of claims, visa-related matters where vendors require Chinese professionals' expertise, and delay in getting environmental clearances that have been raised by certain stakeholders of PLI schemes.
The purpose of the scheme is to attract investments in key sectors and cutting-edge technology; ensure efficiency and bring economies of size and scale in the manufacturing sector; and make Indian companies and manufacturers globally competitive.
These schemes for all 14 sectors have been notified by the concerned ministries/ departments after due approval. These schemes are in various stages of implementation.
The government is expected to disburse about Rs 13,000 crore to eligible firms seeking benefits under the schemes.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Sep 19 2023 | 5:10 PM IST

Explore News