Page 13 - Pli Scheme

Nearly Rs 41,000 crore unspent from govt's Rs 1.97 trillion PLI fund

This means that 80 per cent of the total allocated amount or Rs 1.56 lakh crore will be used to pay incentives to companies eligible to claim benefits over the next few years

Govt nearly doubles PLI scheme share of five key industry segments

Amount raised from Rs 8,405 cr in RE of FY24 to Rs 15,198 cr

Govt, industry discuss ways for successful implementation of PLI schemes

Senior government officials and industry players have discussed ways to enhance collaborations and create a clear action plan for successful implementation of PLI schemes, an official statement said on Sunday. Around 1,200 delegates including beneficiary companies under the PLI (production linked incentive) scheme for 14 sectors and officials met on February 3 to discuss and chart out the strategy for effective and seamless implementation of these schemes, the commerce and industry ministry said. Officials from ministries and departments, including NITI Aayog, electronics, IT, telecommunications, heavy industries, renewable energy, and pharmaceuticals, participated in the discussions. The opening session was followed by two interactive sessions covering all the 14 sectors, with the objective of exploring areas of collaboration between the government and industry champions and creating a clear action plan for successful implementation of PLI Schemes. "The opening session was followe

GTRI suggests criteria to simplify granting incentives under PLI schemes

Economic think tank GTRI has flagged the slow progress in disbursement of sops under production-linked incentive (PLI) schemes and suggested the government to simplify the criteria so as to expedite grant of incentives and push domestic manufacturing. The Rs 4,415 crore disbursement is only 2.25 per cent of the total outlay of Rs 1.97 lakh crore of incentives over five years under the PLI schemes announced in 2020, the Global Trade Research Initiative (GTRI) said on Sunday. "This slow fund spend is unsurprising, considering that setting up greenfield or new manufacturing operations takes time," it said. "PLI criteria for various sectors include thresholds on investments, production, sales, degree of localization, inputs used and many more. Manufacturers may not be able to tick on all boxes," GTRI Co-Founder Ajay Srivastava said. Citing an example, he said in one of the cases, the government suspected the invoice value and disallowed the incentive of a few hundred crore. "In most .

PLI scheme to support industry only initially, not create dependency: Goyal

'Ultimately, competition will prevail,' he said, urging industry to be more outward-looking in terms of scaling businesses

PLI to only give kickstart, ultimately competition will prevail: Goyal

The industry should look at the measures under the Production-Linked Incentive (PLI) scheme as an initial support because going forward, the industry has to face competition to grow further, Commerce and Industry Minister Piyush Goyal said on Saturday. He asked the PLI incentive beneficiary firms to share their "constructive criticism and feedback for better implementation of the scheme". The idea is to make India a manufacturing powerhouse and there is a long journey ahead, he said. More than 1,200 stakeholders, including government officials and industry players are meeting here and deliberating on the progress of 14 PLI schemes. The scheme incentives should not be seen as crutches and "we are not looking to make you dependent on government subsidies. This is only like a kickstart... "The PLI scheme is only meant to give you that little bit of a boost to kickstart your effort and please look at it as a kickstart, an initial support (because) ultimately competition will prevail,"

DPIIT to meet over 1,200 stakeholders on Sat, may discuss fresh PLI targets

The first-of-its-kind meeting will see participation of all 10 ministries/ departments, project management agencies, and industry meetings

PLI will be among biggest sources of funds for EV biz next yr: Tata Motors

Balaji said that PLI benefits would range from 13 to 18 per cent of revenue for vehicles that are approved by the government for PLI

Budget 2024: Allocation for Auto PLI rises over seven-fold to Rs 3,500 cr

The government on Thursday announced an over seven-fold increase in allocation for the automotive industry's production-linked incentive scheme for 2024-25 to Rs 3,500 crore, the interim budget documents showed. According to the Expenditure Budget, a sum of Rs 3,500 crore has been earmarked towards the Production Linked Incentive (PLI) scheme for automobiles and auto components in the financial year beginning March, up from a revised estimate of Rs 483.77 crore in the current fiscal. Additionally, the budget for the PLI scheme for advanced chemistry cell and battery storage has been hiked from Rs 12 crore to Rs 250 crore in 2024-25. The Ministry of Heavy Industries recently extended the tenure of the PLI scheme for automobile and auto components by one year, with incentives now applicable for five consecutive financial years starting 2023-24. The Union Cabinet had approved the PLI-Auto scheme on September 15, 2021 with a budgetary outlay of Rs 25,938 crore for a period of 5 years .

Govt mulls tweaking PLI schemes in textile, food processing, pharma: Report

The government is considering tweaking production linked incentive (PLI) schemes for certain sectors including textiles, food processing, and pharmaceuticals, a senior official said on Tuesday. The official said that a Cabinet note is finalised to seek approval for the changes from the top authorities. The changes would help these sectors attract more players. The scheme was announced in 2021 for 14 sectors, including telecommunication, 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. While certain sectors like electronics are doing well, others are not performing up to the mark. The government has disbursed Rs 4,415 crore under PLI schemes for eight sectors, including electronics and pharma, till October this fiscal. A total of Rs 1,515 crore was disbursed in FY24 till October, while it was Rs 2,900 crore

PLI scheme for ACs game changer for industry: Panasonic Life Solutions

The Production Linked Incentive (PLI) Scheme for the air-conditioner industry is proving to be a "game changer" as within a year and a half of its launch, the ratio of domestic value addition has gone up significantly to 45 per cent from 25 per cent, a top Panasonic Life Solutions India official has said. The sole objective of the PLI scheme for air-conditioners was to increase the value addition to 75 per cent from 25 per cent by FY28 by encouraging the domestic production of components, Chairman of Panasonic Life Solutions India and South Asia Manish Sharma said. "A jump from 25 to 45 has happened just in about more than a year. So, that is the change, which is happening, and that is why I feel that the PLI has been a game changer, specifically in the air conditioners industry," Sharma, who also heads the Electronics Manufacturing Committee of industry body Ficci, told PTI. Investments in heat exchangers, compressors and other components, which are part of the PLI scheme for ...

Centre begins re-auction for 10 GWh tranche of ACC battery PLI scheme

Bidding process will be held online through a transparent two-stage process

Space industry seeks liberal FDI policy, PLI scheme in Union Budget

India's nascent space sector has sought a liberal FDI policy on a par with the defence industry and production-linked incentive in the interim Budget that the government will present next week. The industry body Indian Space Association (ISpA) has also sought GST exemption for satellites, launch vehicles and ground equipment manufacturing, lower tax rates for external commercial borrowings and reduction of satellite sector withholding tax from 10 per cent to two per cent, given the low profit margins. "Our expectation is for enabling a more liberal FDI (foreign direct investment) policy in the space sector. As of now, even one per cent of FDI has to go through the government approval route and that takes months and months," Awais Ahmed, founder and CEO of Pixxel, a Bengaluru-based start-up, told PTI. "The defence sector has 74 per cent FDI through the automatic route. Beyond that, you have to go for the government route. At least matching what is there for the defence side would be

Cabinet clears Rs 8,500 cr incentive scheme for coal gasification projects

The Union Cabinet on Wednesday approved a Rs 8,500 crore incentive scheme for coal gasification projects, sources said. The adoption of gasification technology in India is expected to reduce the country's reliance on imports of natural gas, methanol, ammonia and other essential products. The cabinet has given its go-ahead to Rs 8,500 crore incentive scheme for coal gasification projects, the sources said. The government is targeting to gasify 100 million tonnes (MT) of coal by 2030. In gasification process, coal is partially oxidised by air, oxygen, steam, or carbon dioxide under controlled conditions to produce a liquid fuel known as syngas. Syngas or synthesis gas can be used for power generation and to make methanol as well.

Uttar Pradesh government plans to cash in on semiconductor PLI scheme

With domestic semiconductor demand projected to jump 10 times to $100 billion by 2025 from $10 billion in 2020, the state is aiming to emerge as a leading player in the segment

Industrial and logistics space demand hit record in 2023: CBRE report

The consultant noted that diverse industries, including e-commerce, retail, and manufacturing, chose to outsource their supply chain operations to 3PL firms

Govt may extend scope of PLI scheme to job-creating sectors: Deloitte

To incentivise the manufacturing sector and generate employment, the government may extend the scope of PLI scheme to include sectors like garments, jewellery and handicrafts in the forthcoming interim Budget, Deloitte said. Currently, Production-Linked Incentive (PLI) scheme is available for 14 sectors. Deloitte India Partner Rajat Wahi said driving rural income is one of ways to deal with inflation and slack in consumption demand. "Today we have 14 sectors under PLI scheme, but a lot of these sectors do not generate massive employment. Leather, garment, handicraft, jewellery -- many of these sectors need PLI scheme to come in because they are the ones which are the highest employment generators. That will help lower income households as well as urban,"Wahi told PTI. Deloitte in its Budget expectations report said the government is expected to come out with measures to support sustainable growth in income amongst rural households, thereby boosting rural economy's disposable ...

Foxconn, HCL announce semiconductor JV in India with $37.2 mn investment

Foxconn Technology Group and HCL Group will establish a semiconductor outsourced assembly and testing (OSAT) unit in India, with Foxconn investing $37.2 million for a 40% equity stake

PLI scheme spurs Rs 1.03 trillion investment; boosts exports, jobs

While the incentive disbursement to companies participating in the scheme was Rs 4,415 crore as of now, the payout as of September was Rs 1,541 crore

Improving competitiveness

The electronics sector would benefit from global integration