PLI incentives for FY24 remain at Rs 6,800 crore, far from govt estimates

Singh shared government's plans to make PLI schemes for textiles, bulk drugs, food products, and solar PV modules relatively attractive by adding more product lines and extending the timelines

Incentives worth Rs 6,800 crore were disbursed among the eligible beneficiaries of production-linked incentive (PLI) schemes in 2023-24 against the government estimate of Rs 11,000 crore, revealed Rajesh Kumar Singh, secretary, the Department for Promotion of Industry and Internal Trade (DPIIT), on Wednesday.

Singh also shared the government’s plans to make the PLI schemes for textiles, bulk drugs, food products, and solar PV modules relatively attractive by adding more product lines and extending the timelines. Furthermore, the PLI scheme for drones could see an increase in allocation due to its good offtake.

Though the DPIIT secretary refrained from divulging specific details about the lower-than-expected disbursement, he assured that investments and production under such schemes are on track. “The main issue in the scheme is to ensure enhanced investment and sales – and that has already happened. (Cumulative) investment of about Rs 1.13 trillion had already been reported until February-end. Production/sales are also about Rs 9.5 trillion, employment (number) is 800,000, and exports have reached Rs 3.45 trillion. These are big achievements,” he said in an interview with Business Standard.

Government officials earlier attributed less disbursement to several factors, including companies' inability to claim incentives due to unfulfilled obligations, insufficient applications, and a limited number of applicants in some PLI schemes. In a few cases, the gestation period ended in FY24, and incentives can only be claimed from FY25 onwards.

To address these issues, the government is simplifying the processes involved in the disbursement of incentives. Government departments are being encouraged to proceed with quarterly disbursement of incentives, instead of an annual payout. 

The official emphasised the need for cooperation from companies, citing instances where audit statements were not available or queries were left unanswered. 

“There have been wrongful claims in the case of the FAME scheme. So the PMAs (project management agencies) and the government have been cautious,” Singh added.