In an effort to encourage investment and bolster manufacturing, the government is considering adjustments to the Production Linked Incentive (PLI) schemes.
These changes are based on recommendations arising from inter-ministerial consultations evaluating the performance of the existing scheme across various product categories.
Increased Distribution for AC and LED Lights
Starting this month, the distribution of PLI schemes for products such as air conditioners (AC) and LED lights is set to begin.
This move aims to augment the distribution amount, which stood at just Rs 2,900 crore until March 2023.
Budget Allocation of Rs 1.97 Lakh Crore for 14 Sectors
The PLI scheme, introduced in 2021, covered 14 sectors, including telecom, AC and LED lights, textiles,
medical equipment manufacturing, vehicles, special steel, food products, high-efficiency solar PV modules, advanced chemistry cell batteries,
drones, and pharmaceuticals. A budget of Rs 1.97 lakh crore was earmarked for these sectors.
Pharma Sector Receives Special Attention
An anonymous government official revealed that proposed changes include extending timelines for the pharmaceutical sector and incorporating additional products in certain sectors.
Expanding Textile Definitions and Increasing Drone Schemes
In the textile sector, the definition of technical textile products is set to expand, while the drone sector will see an increase in the number of schemes.
A total allocation of Rs 120 crore over three financial years is designated for PLI Schemes related to drones and drone parts.
Government to Distribute Rs 13,000 Crore
The concerned Ministries/Departments have already notified these schemes, which are at various stages of implementation.
It is estimated that the government will distribute approximately Rs 13,000 crore to eligible companies availing benefits under these schemes. The proposed changes will be sent to the Union Cabinet for approval.”
